ACF raises alarm over critical funding gap for climate change mitigation, only 0.2% of $400bn remitted for the FRLD so far

Africa Climate Forum (ACF) has raised alarm on the funding gap facing African nations in their efforts to combat climate change.  Speaking at the ACF 2024 conference in Abuja on Monday, Director-General of the Global Centre for Law, Business & Economy and convener of the forum, Prof. George Nwangwu,  highlighted that only 0.2% of the US$ 400 billion earmarked for, the Fund for Responding to Loss and Damage (FRLD) has been committed, raising concerns about Africa’s climate resilience. “The fund for responding to loss and damage was operationalised at COP28, and Ibrahim Cheikh Diong has been appointed as its Executive Director, effective November 1, 2024,” Nwangwu said. Despite this development, he emphasised that Africa still faces formidable challenges in securing adequate financing to address the irreversible effects of climate change. George said, with commitments currently exceeding $700 million, the funding gap remains critical.

He said to address the loss and damage caused by severe weather incidents globally, an annual baseline of US$ 400 billion is necessary. He said that the forum will spur actions, forge partnerships, share knowledge, and commit to concrete steps that will propel Africa forward toward a future where we are not just dependent on external aid or solutions but are leaders, innovators, and drivers of global climate change strategies. He said, “Nevertheless, challenges still persist. At just over 700 million U.S. dollars in foreign direct investments commitments, which is merely 0.2% of the total amount needed to address the irreversible effects of climate change and global warming. Africa still needs a lot of financing to move forward. Climate and development experts have recommended a baseline of US$ 400 billion annually to cater for the loss and damage caused by severe weather incidents globally. Again, the absence of mandatory commitments raises doubts about Africa Climate”.

In his remarks, the Vice President, Kashim Shettima, emphasized the urgent need for collective action to combat climate change in Africa. Represented by the Special Adviser to the President of Nigeria on National Economic Council (NEC) & Climate Change, Rukaiya Bashir El-Rufai, He underscored the devastating effects of climate change that Nigeria, like many other nations, has already experienced, including severe floods, disrupted food production, and energy crises. Highlighting Nigeria’s proactive stance, Shettima referenced the country’s Climate Change Act of 2021, which aims for low greenhouse gas emissions and sustainable growth. He noted the targets for net-zero emissions by 2060 and emphasised ongoing efforts to establish a robust sustainable carbon market projected at $2.5 billion. Shettima urged stakeholders to recognise climate change not as a distant concern but as an immediate threat requiring urgent and coordinated responses. The Vice President also lauded the forum’s organisers for their commitment to fostering tangible solutions through initiatives like the Deal Room, which aims to facilitate financing for climate projects.