🚁 Heli view: Africa must stick to its guns on climate funding

African leaders presented their newly-minted green agenda on the global stage in New York in the past week. But the reception was underwhelming. What now?

• Is the continent on the wrong track… and if so, what’s the alternative?

The presentation: It was a perfect charm offensive. African leaders at the UN General Assembly showed eloquence and resolve to shift global climate action.

• They plugged the recently agreed Nairobi Declaration – in perfect unison

• Past talk of victimhood was replaced with a focus on economic opportunity

• African resources shone as key for the planet’s climate (forests, minerals, etc)

Beyond generalities: African leaders also made clear the Global North should invest on the continent for climate action to benefit the whole planet. That includes:

• New, expanded for-profit funding

• Changes in global debt structures

• Taxation of the biggest emitters

The reaction: Nobody thought this would be easy. But the response was more disappointing than expected.

• Replenishment pledges for the Green Climate Fund fell short of promises (see chart above)

• Observers see little chance of much movement before COP 28

The background: Africa’s bumpy week has much to do with politics in far-off places.

• The US Congress is deadlocked on funding, including for Africa

• EU countries are scaling back domestic commitments (UK & Germany)

• Wary of much-debated debt restructuring, investors fled Kenya's eurobonds

What matters: Despite setbacks, African leaders are building on strong momentum. That should give them confidence to stick with their course.

• In New York, they featured prominently and as equal partners

• Quietly and otherwise, they are creating all the right alliances

• The new World Bank president has been highly supportive

• Embracing the popular Bridgetown Initiative will yield benefits

• The White House remains engaged, regardless of Congress

In sum: The foundation for climate-related financial reforms have been laid. This should result in more funding for climate-positive growth in Africa, eventually.

• US Treasury Secretary Janet Yellen embraced the linkages between climate change, investment and food security.

• President Joe Biden still seeks Congress approval for at least $25 billion in new World Bank financing.

What next: October is rich with further opportunities for lobbying. Keep plugging away at the Three Basin Summit in Brazzaville and the IMF annual meeting in Marrakech.