BAKU, Azerbaijan (PAMACC News) - More than ever before, African environmental Civil Society Organisations, youth groups, and country representatives at the two week 29th climate change summit (COP29) in Baku, Azerbaijan, united under one voice, calling on the Global North to keep the promise of climate finance, but desist from imposing loans on climate burdened countries.
Kenya is one of the countries bedeviled with such climate related loans of which the government has no option, but to keep taxing the already overtaxed and climate burdened citizens in order to service the ‘climate finance’ debts.
“It is quite immoral to burden African communities who are already paying the ultimate prize of climate change with unfair loans to mitigate a disaster, apparently caused by the financier,” said Jessica Mwanzia, the Climate Finance and Gender Lead at the Pan African Climate Justice Alliance (PACJA).
“Africa emits a paltry four percent of the total global greenhouse gases, most of which is absorbed just by one carbon sink – the Congo Basin, leaving the continent with almost no, or extremely insignificant emissions,” said the activist.
The World Bank describes the Congo Basin as the “lungs of Africa”, being one of the largest forest-based carbon sinks in the world, absorbing up to 1.2 billion tons of carbon annually against 1.4 million tons of the emissions from the continent.
“Africa faces a unique climate paradox,” said Dr Augustine Njamnshi, the Director - African Coalition for Sustainable Energy and Access (ACSEA). “We are a continent rich in biodiversity, vast forests, and vital ecosystems that help stabilise the planet, not to mention a continent rich with minerals essential for energy transition, yet, the most impacted by climate disasters,” he said.
The civil society at COP29 intensified the pressure on the developed world to mobilise resources to support African communities with climate adaptation funds that are need-based, and in form of grants.
Ironically, African countries including Kenya are already grappling with loans guised as ‘climate finance’ through projects that purport to ‘prevent further emission,’ or to sequester ‘existing greenhouse gases’ from the atmosphere.
Furthermore, the climate financiers are seeking to recoup back money advanced to the country among other African countries to support climate adaptation projects.
“How can a climate change financier seek to be paid back money invested in a water project for example, set up for a community whose water sources have been destroyed as a result of climate change?” asked Mwanzia. “Loans are supposed to be given to business entities whose main objective is to make profits and not to communities struggling to adapt to climate related disasters,” she said.
Through the Green Climate Fund (GCF), the world largest facility for climate finance that was established within the framework of the United Nations Framework Convention on Climate Change (UNFCCC) to assist developing countries with climate change adaptation and mitigation activities, Kenyan tax payers are among African communities that have been exposed to debt burdens amounting to hundreds of billions of shillings in the name of climate finance.
According to Charles Mwangi, a Nairobi based environment activist, it becomes even more unfair to the taxpayers because some of the projects do not have footprints of the target communities in terms of prioritisation.
So far, Kenya is involved in 20 GCF climate change mitigation and adaptation projects worth hundreds of billions of shillings, some which cut across multiple countries, yet, most of them are earmarked as loans to be serviced by local taxpayers.
According to data available at the GCF website, all the 20 projects are managed by foreign intermediaries with supervisors based in USA, France, UK, Netherlands, and Italy among other countries, apart from only one – ‘Enhancing community resilience and water security in the Upper Athi River Catchment Area, Kenya,’ whose intermediary is the National Environment Management Authority (NEMA).
One of the country specific grants known as ‘Ending Drought Emergencies: Ecosystem Based Adaptation in Kenya’s Arid and Semi-Arid Rangelands’ which is a Sh4 billion adaptation project, but it is managed by IUCN on behalf of Kenya, under the supervision of a Swizz based consultant.
Another Sh13 billion equity financing project known as ‘KawiSafi Ventures Fund,’ targeting Kenya and Rwanda has also been channeled through Acumen Fund Inc, another foreign entity, under supervision of the US based consultant.
Also of interest, is a climate adaptation loan worth Sh25 billion, known as ‘Africa Rural Climate Adaptation Finance Mechanism (ARCAFIM) for East Africa region,’ targeting four Eat African countries. The loan, which is to be serviced by taxpayers in Kenya, Uganda, Rwanda and Tanzania has been channeled through the International Fund for Agricultural development (IFAD), under the Rome based consultant.
“It will make more sense if most of these projects are adaptation based with a sense of ownership by local communities who are at the frontline of the climate crisis,” said Dr Wilber Ottichilo, the Governor Vihiga County and the Chair for Environment Committee at the Council of Governors.
The activists pointed out that most of the finances are lost in expensive air tickets for foreign consultants, their hotel bills, and allowances at the expense of poor taxpayers who are as well riddled with climate related disasters.
BAKU, Azerbaijan (PAMACC News) – African environmental activists at the ongoing COP29 climate summit in Baku are urging climate financiers to stop burdening poor countries with unmanageable loans under the guise of funding climate adaptation and mitigation projects.
Just a few months ago, widespread protests erupted in East and West Africa, led by young people demanding an end to heavy taxes imposed by governments to service foreign loans—many of which have been embezzled by corrupt leaders.
“We reject loans and any form of debt for a continent that had no role in causing global warming. We refuse to borrow from the arsonist to put out the fire they started and which is burning our livelihoods,” said Dr. Mithika Mwenda, Executive Director of the Pan African Climate Justice Alliance (PACJA).
According to PACJA, between 70 and 80 percent of financing from the Green Climate Fund (GCF) to African countries comes in the form of loans, often routed through intermediaries. In practice, only a fraction of these funds—sometimes less than 10 percent—actually reach the climate-burdened communities that need them most.
“We demand that these finances be directed first and foremost toward those most exposed to climate risks and least able to adapt,” Dr. Mwenda continued. “This means moving beyond fragmented and delayed funding and ensuring a reliable, affordable, accessible, and timely flow of finance—preferably in the form of grants—that matches the scale of the crisis,” he said during Africa Day, an annual event organized by the African Development Bank on the sidelines of COP29.
One of the many problematic financial instruments imposed on African countries is the Sustainable Renewables Risk Mitigation Initiative (SRMI) Facility. This initiative, primarily a mitigation project aimed at offsetting 89 million tons of carbon emissions, has seen six African countries and one from Asia-Pacific (Kenya, DR Congo, Namibia, Mali, Botswana, and the Central African Republic) saddled with a loan of USD 1.6 billion. This loan, intended to offset emissions primarily from the Global North, will have to be repaid by the very communities already bearing the brunt of climate change.
Despite Africa contributing less than 4 percent of global greenhouse gas emissions, these countries are expected to repay loans taken for projects designed to mitigate the environmental damage caused by wealthier nations. The GCF approved the project on March 19, 2021, with the International Bank for Reconstruction and Development and the International Development Association overseeing its implementation, under the supervision of Mr. Zhihong Zhang, a Senior Carbon Finance Specialist based in Washington, D.C.
Another example is the Leveraging Energy Access Finance (LEAF) Framework, approved on July 1, 2021, and implemented by the African Development Bank (AfDB). The project, meant to help Ethiopia, Ghana, Guinea, Kenya, Nigeria, and Tunisia avoid emitting 29.9 million tons of greenhouse gases, requires repayment of a loan amounting to USD 959.9 million. The burden of this loan will fall on poor taxpayers, many of whom are already suffering the impacts of climate change.
Activists argue that focusing on mitigation loans for African countries is a misplaced priority. Even if Africa were to stop emitting all greenhouse gases, the continent’s contribution to the global carbon footprint is so minimal that it would not significantly alter the course of global warming.
In addition to mitigation loans, the GCF is also seeking to recoup some of the funds it has disbursed to poor countries for climate adaptation. One such project is the Africa Rural Climate Adaptation Finance Mechanism (ARCAFIM) for East Africa, approved on October 25, 2023. The project, which is being implemented by the International Fund for Agricultural Development (IFAD), will provide financing for climate adaptation in Kenya, Uganda, Tanzania, and Rwanda. However, the loan of USD 200 million will need to be repaid by the very taxpayers who are already suffering from the consequences of climate change.
“Many of these projects lack the input of the communities they are meant to serve,” said Charles Mwangi, a Nairobi-based climate activist. “Communities must be at the forefront of decision-making when framing these projects. Instead, much of the funding is lost to exorbitant costs like expensive airfares for foreign consultants, hotel bills, and allowances,” he added.
In contrast to these externally imposed projects, Kenya is piloting the Financing Locally-Led Climate Action (FLLoCA) initiative, a five-year program supported by the Government of Kenya, the World Bank, and other donors. FLLoCA is designed to support locally-led climate resilience actions, strengthening both county and national governments’ capacity to manage climate risks.
“We are advocating for policies that prioritize adaptation, not as an afterthought, but as a central pillar of climate finance,” Dr. Mwenda said. “We must amplify the voices of local organizations and grassroots leaders to ensure that global commitments reflect the real priorities on the ground.”
At COP29, the discussions on the New Collective Quantified Goal (NCQG) offer a critical opportunity to reshape global climate finance in a way that aligns with Africa’s needs.
“It is essential that adaptation finance be needs-based, mobilized from public funds in the Global North, and provided as grants, not loans,” Dr. Mwenda emphasized. “The private sector should be considered a third or fourth option, not the first.”
NAIROBI, Kenya (PAMACC News) - Kenya is one of the African countries that are keen on implementation of the Nationally Determined Contributions (NDC) with a hope of reducing the greenhouse gas emission by 32% come the year 2030 compared to the business-as-usual scenario
The NDCs are the climate action plans and commitments by individual countries under the Paris Agreement on climate change. The main aim is to reduce greenhouse gas emissions from the atmosphere, while adapting to the impacts of the changing climatic conditions.
In Kenya, the NDC is extremely important because the country’s economy is deeply intertwined with climate-sensitive sectors such as agriculture, tourism, and energy. Prolonged droughts, erratic rainfall, and rising temperatures have significantly affected crop production, food security, and livelihoods, particularly among the rural population.
“In this country, climate change is estimated to cost between 3% to 5% of GDP annually – this really hampers us and makes it difficult for the country to take the opportunity to give its citizens the services they require,” said Michael Okumu of the Ministry of Environment and Forestry Climate Change Directorate during a workshop a UNDP in Nairobi.
So far, Kenya has developed several policies that will be instrumental in implementation of the NDC. The National Climate Change Action Plan (NCCAP) III 2023 – 2027 for example, is the third five-year plan that presents the detailed priority actions that Kenya will embark on to address climate change in the medium-term planning period and contribute to the achievement of our NDC under the Paris Agreement.
According to President William Ruto, the government of Kenya is keen to continue implementing the Climate Change Act (No. 11 of 2016), which provides the framework for compliance with the Paris Agreement, and Kenya’s (2020) updated NDC.
“The Climate Change Act is central to our climate actions at both the national and county government levels,” said President Ruto in a statement. “It is important to note the progress made by county governments in the last five years in the enactment of county-level climate legislation that establishes Climate Change Funds and ward climate change committees, and provides for allocation of a minimum percentage of development budgets to finance locally-led climate actions,” he said.
The National Adaptation Plans (NAP) is another policy instrument that seeks to identify medium- and long-term adaptation needs, informed by the latest climate science.
Kenya’s NAP process objectives are to highlight the importance of adaptation and resilience building actions in development, and to integrate climate change adaptation into national and county level development planning and budgeting processes.
The process is also used to enhance the resilience of public and private sector investment in the national transformation, economic and social and pillars of Vision 2030 to climate shocks, to enhance synergies between adaptation and mitigation actions in order to attain a low carbon climate resilient economy, and as well to enhance resilience of vulnerable populations to climate shocks through adaptation and disaster risk reduction strategies.
According to the UNDP, countries can utilize the NAP process and its outcomes to update and improve the adaptation elements of the NDC, which is a central part of the Paris Agreement.
Through Kenya’s NDC document which was submitted to the UN on 28th December 2020, the country seeks to abate greenhouse gas emissions by 32% by 2030.
The country also aims to ensure an enhanced resilience to climate change towards the attainment of Vision 2030 by mainstreaming climate change adaptation into the Medium-Term Plans (MTPs) and County Integrated Development Plans (CIDPs) and implementing adaptation actions.
Kenya is committed to enhancing its adaptation ambition by committing to bridging the implementation gaps which include enhance uptake of adaptation technology especially among women, youth and other vulnerable groups, while incorporating scientific and indigenous knowledge, as well as strengthening tools for adaptation monitoring, evaluation and learning at the national and county levels, including non-state actors.
The country also seeks to enhance generation, packaging and widespread uptake and use of climate information in decision making and planning across sectors and county level with robust early warning systems, and through exploring innovative livelihood strategies for enhancing climate resilience of local communities through financing of locally-led climate change actions.
However, according to Hillary Korir, of the National Treasury, Kenya, NDC is ambitious and will require significant amounts of funding. So far, the country does not have a dedicated budget for climate change.
He noted that there was lack of unified approach for tracking & reporting of climate finance flows, and that there was need for capacity to originate and design innovate climate change related proposals.
ABIDJAN, Côte d’Ivoire, PAMACC News – A new report by the United Nations Economic Commission for Africa (ECA), the World Meteorological Organization (WMO) and the African Union Commission on the state of climate in Africa has called for urgent measures to increase investment in climate adaptation and resilience to save Africa from the looming crisis.
The report, ‘State of the Climate in Africa’ indicates that the continent is facing an escalating climate change bill, with an average loss of 2-5% of Gross Domestic Product (GDP) due to climate extremes. In Africa, the cost of adaptation is estimated to be between USD 30-50 billion annually over the next decade, representing 2-3% of the region’s GDP.
“This report serves as a stark reminder of the urgency of climate action in Africa, where extreme weather events are intensifying and disproportionately impacting the continent's social economic development.”, said the Minister of Green Economy and Environment of Zambia, Mike Elton Mposha.
“Africa is uniquely vulnerable to climate change, with its high dependence on rain-fed agriculture and limited adaptive capacity. Rising temperatures, rising sea levels, and erratic rainfall are already causing widespread harm to human health, ecosystems, and livelihood. These challenges threaten to derail Africa's big-bed progress towards achieving the sustainable development goals and the African Union agenda 2063”, stated the Minister of Green Economy and Environment of Zambia.
“It is essential to continue advocating for increased investments in climate adaptation and resilience, particularly through the laws and dynamic priorities,” he added.
“The State of the Climate in Africa 2023 Report highlights the urgent need for action. Africa faces disproportionate burdens and risks from climate change, which threatens food security, public health, and socio-economic development across the continent,” said Ambassador Josefa Leonel Correia Sacko, Commissioner for Agriculture, Rural Development, Blue Economy, and Sustainable Environment at the African Union Commission.
Hanan Morsy, Deputy Executive Secretary and Chief Economist at the Economic Commission for Africa (ECA) said, “Africa is on the front lines of fighting climate change and its impacts, from rising temperatures to shifting rainfall patterns, and other extreme weather events. Consequently, key sectors like the agricultural sector, which employs over 60% of Africa’s population, are under threat. Crops are failing and livestock is suffering as climate variability disrupts traditional farming practices, jeopardizes food supply, and the economic stability of nations, which are already grappling with high poverty and levels.”
“At the same time, African countries face significant debt distress, forcing trade-offs with critical development needs such as health or education. We can only drive investments in climate action if we have financing, therefore, there is a need to achieve sustainable debt levels to make the essential investments” added Ms. Morsy.
To this end, she explained, “There must be first, a timely and sustainable international debt resolution that calls for an overhaul of the G20 Common Framework to make it more effective, time-bound, and transparent, and second, a reform of the global financial architecture to ensure affordable financing at scale. Third, the implementation of innovative financing instruments such as debt-for-nature swaps, and green and blue bonds; and fourth, advancing carbon markets to establish a fair carbon price supported by high-integrity carbon registries to ensure transparency and trust. These are transformative avenues to address Africa's climate finance requirements.”
The 2023 State of the Climate in Africa report is expected to serve as a vital tool for policymakers, providing the observational basis necessary to drive action and support decision-making in the face of an increasingly challenging climate future.
