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.”
