African Development Bank commits $25bn to Africa’s Climate Fund for the next 27 years
President of the African Development Bank (AFDB), Akinwunmi Adesina, announced a significant commitment during the ongoing African Climate Summit in Kenya. According to him, the AFDB pledges to provide $25 billion in funding to Africa’s Climate Fund over the next 27 years. This ambitious financial commitment underscores the bank’s dedication to advancing climate finance initiatives in Africa, with the aim of accelerating the transition to cleaner and more sustainable energy sources.
In his address, President Adesina emphasized the urgency of taking concrete actions at both the national and continental levels to address climate adaptation. The AFDB’s substantial financial commitment aims to support these efforts. He stated, “At the national level, we must accelerate actions on climate adaptation, and that is why the African Development Bank has committed to providing $25 billion in climate finance by 2025.”
One of the prominent initiatives launched by the AFDB in collaboration with the Global Centre on Adaptation is the African Adaptation Acceleration Program. This program is recognized as the largest climate adaptation initiative globally, underlining Africa’s commitment to addressing climate challenges and building resilience.
President Adesina also stressed the importance of unlocking Africa’s renewable energy potential. The AFDB is actively implementing a $20 billion plan to harness solar power and provide electricity to an estimated 250 million people. He emphasized the need to power every home, school, and hospital in Africa with stable, affordable, and reliable energy.
However, President Adesina emphasized a pragmatic approach, acknowledging that Africa should utilize its natural gas resources in combination with renewable energy sources to meet its growing energy needs sustainably.
The African Climate Summit aims to achieve three key climate finance goals: increasing financing, targeting funding to specific needs, and providing more affordable financing with a higher risk appetite. Climate change poses significant challenges globally, and Africa faces particular climate-related threats, including droughts, desertification, cyclones, and their associated consequences, such as displacement, migration, and food crises.
The AFDB’s substantial financial commitment to Africa’s Climate Fund signifies a critical step in the region’s efforts to combat climate change, mitigate its effects, and transition toward a more sustainable and resilient future.
