Afreximbank Asserts Africa’s Climate Position At COP29; Advocates For A Just And Equitable Energy Transition For Economic Development
The African Export-Import Bank (Afreximbank), which is participating in the 29th Conference of the Parties in Baku, Azerbaijan, will redouble its commitment to promoting a just energy transition in Africa, supporting the continent’s critical development needs and unlocking its economic potential.
The Bank’s engagement will be aligned with the African Union’s Nairobi Declaration at the 2023 Africa Climate Summit and builds on COP28 actions around climate finance, compensation for loss and damage, the use of natural gas as a transition fuel, and the mobilization of high-quality climate finance. Afreximbank’s efforts will align climate change with development goals, emphasizing the role of the African Continental Free Trade Area (“AfCFTA”) in promoting sustainable growth and regional integration. Importantly, these considerations will also be grounded in the core principles of AU Agenda 2063: The Africa We Want.
The Bank’s overarching goal is to advocate for the rapid operation of the Loss and Damage Facility, which provides financial support to countries suffering climate-related losses, and to promote timely disbursement of funds to African countries to ensure they have the resources they need to address immediate and long-term climate impacts . It will also highlight the importance of transparent and accessible financing mechanisms to ensure that local communities directly affected by climate change receive the support they need.
Speaking during Africa Day at the African Union Pavilion at COP29, Professor Benedict Oramah, President and Chairman of the Board of Directors of Afreximbank said:
“Although Africa accounts for less than 4% of global emissions, it is severely affected by global climate change. Losses in economic growth, migration and regional instability represent significant negative impacts of climate change on the continent, which This impact is likely to intensify over the next decade. We are at a stage where taking action not only means good environmental stewardship, but must also be seen as sound economic policy, because the costs of immediate and decisive action are far lower. The costs of inaction and delayed efforts. The issue of climate adaptation financing in Africa and Caribbean island countries has become an emergency, so our participation in COP29 is an opportunity to advocate for Africa and the Caribbean’s climate priorities and expand their presence in global discussions. a voice and drive urgent action on climate finance”.
Professor Orama added that financial resources and sound investments are critical to combating climate change, reducing emissions, encouraging adaptation and building resilience. He explained that taking Africa as an example, Africa will need total climate financing of US$1.3 trillion to US$1.6 trillion per year by 2030 to meet its urgent needs. Afreximbank understands its mandate as a trade and development partner of Africa and the Caribbean Community and will advocate for policies and investments to accelerate Africa’s energy transition, responsibly develop content-rich natural resources and ensure adequate infrastructure to reduce energy poverty , promote trade and position the continent for an accelerated and appropriate energy transition.
In addition, Afreximbank will advocate for the expansion of the New Collective Quantitative Targets (NCQGs) for climate finance to replace previous underpaid commitments of US$100 billion, and promote the market of financial mechanisms such as green bonds, concessional loans and carbon emissions to finance climate projects in Africa .
Afreximbank will also participate in COP29 side events and panel discussions focusing on African solutions. These groups will include a “United to finance the green transition”Held on the 14thth In November, the high-level panel included Professor Benedict Oramah, President and Chairman of Afreximbank; Ambassador Josefa Sacko, African Union Commissioner for Agriculture, Rural Development, Blue Economy and Sustainable Environment (ARBE); Claver Gatete, Executive Secretary, Economic Commission for Africa; Wamkele Mene Your Excellency, Secretary-General of the African Continental Free Trade Area Secretariat; Ibrahima Cheikh Diong, Executive Director, Loss and Damage Response Fund (FRLD); Mariane Søndergaard-Jensen, Senior Director, EIFO, Chair of E3F and Chair of OECD Arrangement Participants. The meeting will be chaired by Professor Andreas Klassen, Associate Research Fellow at the University of Oxford.
In addition, banks will participate in “Sustainable Trade in Africa” The event is expected to be held on the 15thth In November, in partnership with the United Arab Emirates Trade Authority (UAE) and DCG,” speakers included Yoofi Grant of the Ghana Investment Promotion Center (GIPC); Oluranti Doherty, Managing Director, Export Development Bank, Afreximbank; the Honorable Susan Auma Mang’eni, Kenya, small and medium enterprise development advocate; Mr. Ren Hao, NWTN, leader in sustainable technology; and Nassim Oulmane, climate change and green economy expert at the United Nations Economic Commission for Africa (UNECA) PhD.
Afreximbank will work to advance discussions to amplify Africa’s climate narrative, support a just energy transition in Africa, mobilize climate finance, call for the operation of the Loss and Damage Fund and align trade with climate goals.
