President of African Development Bank (AfDB) Dr Akinwumi Adesina has disclosed that the African continent loses between $7-15 billion a year due to climate change, adding that if the current trend continues, it will rise to $50 billion by 2050.
This is even as he pointed out that the continent is witnessing the largest ‘carbon grab’ in history as several countries give away their lands and rich carbon sinks in exchange for financing.
Adesina stated this while speaking as the Special Guest Lecturer at 14th Convocation lecture of National Open University of Nigeria (NOUN) in Abuja on Friday, with the theme, “Advancing Africa’s Positioning within Global Development and Geopolitical Dynamics.”
While noting that climate change is having devastating effects on African countries, where 9 out of the 10 most vulnerable countries to climate change in the world are in Africa, he said: “The global climate finance architecture is failing in tackling the climate change challenges facing the continent. Africa receives only 3% of global climate finance.”
Adesina noted that while Africa contributes significantly to the global public good of tackling climate change with its vast resources, its natural capital has been undervalued. As a result, Africa is ‘Nature rich but cash poor’.
“For example, while the GDP of Africa was estimated at $2.5 trillion in 2018, this was 2.5 times lower than the estimated value of its natural capital estimated at $6.2 trillion. This partly includes some valuation of the ecosystem services,” he said.
He explained that the proper valuation of Africa’s green GDP is where the trillions of dollars will come from to boost the wealth and financing of the continent, however, a global trend of rich countries moving to Africa to buy vast tracts of land for carbon credits is alarming.
“Unknown to many, Africa is witnessing the largest ‘carbon grab’ in history as several countries give away their lands and rich carbon sinks in exchange for financing. This is driven by a rush of some rich countries to buy carbon cheap, at a great loss to Africa. While a ton of carbon footprint costs over $200 in Europe, it costs just $3-5 per ton in many parts of Africa. This rush for a ‘carbon grab’ in Africa, which subordinates Africa’s carbon assets, has several consequences for Africa’s growth opportunities,” he added.
He further explained that African countries are being underpaid for their carbon, due to the undervaluation of Africa’s carbon sinks, adding that the sequestered carbon on the lands can no longer be used as part of the nation’s nationally determined contributions.
Ho also posits that African countries lose sovereignty over their lands and the carbon sequestered over these lands and forests cannot be used to rebase and revalue the green GDP of the countries.
“The ongoing carbon grab in Africa is a lose-lose proposition for African countries. African countries must not sell themselves cheap,” he added.
He added that it is critical that Africa does not under-value its vast natural resource assets but use them instead to properly re-value their economies and create more wealth for themselves.
“That is why the African Development Bank is leading the development of a new framework to re-estimate the GDP of Africa based on proper valuation of its vast natural capital. This will lower Africa’s debt to re-estimated GDP and expand its ability to borrow more resources to finance its development. The proper valuation of Africa’s green wealth will also improve countries’ risk profiles and credit ratings,” he said.
Meanwhile, on climate change, he said the African Development Bank is mobilising climate finance at scale for Africa.
“We are implementing the African Adaptation Acceleration Programme, a $25 billion programme to support countries to adapt to climate change, in collaboration with the Global Centre on Adaptation. It is today the largest climate adaptation programme.”
The African Development Bank is also deploying different instruments to insure countries against climate shocks. This includes the Africa Disaster Risk Insurance Facility, which pays insurance premiums for countries against extreme weather patterns and supports disaster preparedness.
