The G20 Must Help Africa Close the Climate-Finance Gap

Written By: Raila Amolo Odinga

In a world grappling with unprecedented climate challenges, the addition of a permanent seat in the G20 for the African Union represents a critical opportunity.

As the continent faces increasingly frequent and severe floods, droughts, and heat waves – bearing the brunt of a crisis it did not create – it urgently needs financial support to escape the cycle of debt and disaster that impedes climate resilience and sustainable development.

The path forward is clear: Wealthy G20 economies must move beyond rhetoric and provide sustainable, long-term climate financing and concessional loans to help Africa close the current funding gap.

As the group’s leaders gather in Rio de Janeiro for the G20 summit on November 18-19, the world – and especially African countries – will be watching closely.

Africa’s seat in the G20 is long overdue, reflecting both its growing importance and the severity of the crises it faces.

But representation alone is not enough. Africa’s inclusion must lead to real support and tangible benefits for local communities grappling with economic, environmental, and energy challenges.

THE STAKES

For too long, Africa has been relegated to the periphery of the global economy. Now that it is represented in the G20, the world’s largest economies have a responsibility to dismantle the entrenched structures that keep the continent and other developing regions impoverished.

The energy sector is a prime example.

Despite decades of promises by political leaders, fossil fuels have failed to deliver electricity to vast swaths of the continent.

With 600 million Africans still living without power, Africa’s energy ‘transition’ is less about moving from dirty to clean energy and more about moving from no energy to sustainable sources.

The stakes could not be higher. Africa’s future growth and prosperity hinges on its ability to provide universal, affordable, and reliable access to energy.

Fortunately, the continent possesses abundant renewable-energy resources, with experts projecting that solar power will be the continent’s cheapest electricity source by 2030.

Morocco’s Noor Ouarzazate solar complex, the world’s largest solar farm, demonstrates what African countries can achieve with adequate funding and support.

Similarly, projects like Kenya’s Olkaria geothermal power plants, funded by the Japanese government, and Ethiopia’s Adama wind farms, backed by

Chinese concessional loans, show that Africa’s energy goals are well within reach.

But to unlock its vast potential in renewables, Africa needs substantial financial investment and technical support.

To this end, the continent’s development must be central to the global push to triple renewable-energy production by 2030.

Creating meaningful economic opportunities for Africans requires rooting these efforts in secure, self-sustaining frameworks that serve the needs of local communities, rather than perpetuating the exploitative model of resource extraction that has characterised fossil fuels.

BEYOND PROMISES

With expanded energy capacity, Africa could foster industries that produce green, value-added goods, reducing the continent’s reliance on raw material exports.

Achieving this, however, requires more than energy security; it calls for comprehensive reforms to the global trade systems that stifle economic growth in developing countries and undermine their competitiveness.

The G20’s support is crucial to achieving this transformation.

The moment has come to turn promises into concrete action.

The United Nations’ annual climate change conferences (COPs), long characterised by lofty rhetoric, can no longer serve as forums for symbolic gestures.

G20 countries must urgently make and honour the proposed pledge to provide developing countries with US$1 trillion annually in long-term, grant-based climate financing.

This is not an arbitrary figure; for the world’s least developed economies, it is the difference between stagnation and genuine progress.

The G20 summit in Brazil – coinciding with COP29 in Azerbaijan – could help secure the necessary funds by creating reliable and innovative financing mechanisms, from taxes on the ultra-rich to levies on airplane tickets, financial transactions, and fossil-fuel production.

VITAL REFORMS NEEDED

As the climate crisis intensifies, the global financial system must evolve to support those most affected by its devastating effects.

To make development financing more accessible and equitable, the G20 must advance vital reforms, such as providing multilateral development banks with more capital and streamlining cumbersome bureaucratic processes.

Earlier this year, Brazilian president Luiz Inácio Lula da Silva, a vocal champion of the Global South, addressed the African Union summit in Addis Ababa and pledged to use Brazil’s G20 presidency to advocate for Africa’s interests.

This act of solidarity set the stage for this wek’s G20 summit.

For African countries, these funds are more than just financial assistance; they represent hope for meaningful change, economic resilience, and sustainable development in a world shaped by deepening inequality, environmental fragility, and social crises.

PRACTICAL STRATEGIES

Africa, Brazil, and the broader Global South must leverage their influence within the G20 to offer fresh perspectives and practical strategies to tackle today’s global crises.

Together, these countries can play a leading role in the fight against climate change, promoting policies and partnerships aimed at ensuring a sustainable future.

The African Union’s G20 membership is a historic milestone.

But its true significance will depend on how effectively it uses its seat to create a future where African countries not only adapt to crises but overcome them, shaping the global climate agenda alongside their wealthier counterparts.

– Raila Amolo Odinga, a former prime minister of Kenya (2008-13), is a candidate for chair of the African Union Commission.
– Copyright: Project Syndicate, 2024; www.project-syndicate.org