The Executive Director of the African Forum and Network on Debt and Development (AFRODAD), Jason Rosario, has backed calls for African countries to reject climate finance offered in the form of loans, arguing that such financial arrangements would exacerbate the continent’s debt burden and hinder its development.
As preparations continue for 2024 United Nations Climate Change Conference of Parties (COP29), scheduled to take place in Azerbaijan in November, Rosario contended that “when we take on debt as part of our climate finance, the issue is we’re entering into market-based, private sector-led financial instruments that further constrain our resource port.”
He asserted that “What we really want to do is ask for the climate finance discussion to be on grants. What we want is for the climate conversation to focus on repatriation and reparations for historical damages that have been done to the environment, not by the continent of Africa, not by the people of Africa, but by those who are exploiters and extractors of natural resources, particularly oil and gas.”
This perspective was shared by the AFRODAD boss, who was speaking in an interview on the sidelines of the 4th Conference on Debt and Development (AfCoDD IV), in Maputo, Mozambique.
Rosario urged African negotiators to be vigilant in navigating these complex financial dynamics. He stressed the importance of guiding the conversation away from debt-based investments in fossil fuels and towards a model that supports Africa’s development and industrialization.
He said as Africa enters these negotiations, it is crucial not just to focus on securing any form of finance, but to ensure that the continent accepts the right type of money.
This, he argued, includes adopting a system, structure, and governance framework that supports Africa’s ongoing development, industrialization, and efforts to move away from a dependency on primary commodity exports.
Rosario’s call, which challenges the prevailing approach to climate finance on the global stage, comes at a critical time when African countries are seeking to balance their climate commitments with economic growth.
It is well understood that climate finance has grown consistently over the last decade, but still falls far below what is needed to meet the goals of the Paris Agreement.
While global climate finance reportedly surpassed US$1 trillion for the first time in 2022, estimates suggest that between US$6.2 trillion and US$7.3 trillion will be needed annually by 2030 and 2050, respectively, to achieve Net Zero. This funding gap, it is understood, underlines the urgency of securing the right type of climate finance for Africa.
During the recent consultation by the African Group of Negotiators (AGNES) meeting in Mombasa, Kenya, African climate finance practitioners rallied for a new approach to climate finance, urging developed countries to commit at least US$5.9 trillion by 2030 in climate finance.
This highlights Africa’s push to reshape the financial architecture supporting climate adaptation, mitigation and a just transition.
The AGNES consultation concluded that Africa must take a proactive role in shaping the future of climate finance. The new finance goal presents an opportunity for Africa to assert its agency and align the goal with its real needs, realities and demands.
The gathering of experts further emphasized the urgency of addressing the continent’s growing climate-related needs, with a particular focus on securing public finance from developed countries.
AfCoDD IV is being held under the theme “Africa’s Debt Crisis: Pan-African Feminist Perspectives and Alternatives,” and is focused on the intersection of Africa’s rising debt burden and the gender inequalities that persist across the continent.
The conference, which is being organized by AFRODAD will run for three days, is particularly significant this year as it focuses on a feminist perspective on public debt, reflecting on the progress of the Maputo Protocol.
Story By B&FT
