Climate change is also jeopardising water and energy security, exacerbating poverty, and negatively impacting sovereign credit ratings, the African Development Bank (AfDB) cautions, noting that it is the continents poorest and most vulnerable communities who are hardest hit by the crisis.
Africa is in the eye of the storm from climate change, accounting for 9 out of the 10 most vulnerable countries to climate change globally, Bank President Akinwumi Adesina told participants at a high-level roundtable on climate finance, held on the sidelines of the International Monetary Fund and World Bank spring meetings earlier this year.
But Africa is not getting what it needs to adapt to climate change. Africa received just $30 billion per year for climate adaptation, while its needs are $277 billion per year, leaving a huge financing gap.
This woeful underinvestment in climate action in Africa has prompted the AfDB to ramp up its commitment to climate finance. In 2023, climate change considerations were integrated into 97% of the Banks operations, with $5.8 billion allocated to climate financing. This represents 55% of all AfDB approvals. $2.7 billion was allocated to mitigation and $3.1 billion adaptation, the Banks latest investor presentation shows..
The African Development Bank set a target to devote 40% of its total financing to climate finance. We have exceeded this target consistently over the past three years, reaching 55% in 2023, Adesina noted.
