Financing climate action and a just energy transition in southern Africa-challenges and opportunities: issues paper

Abstract

Climate change results in more intense and more frequent extreme events such as droughts, floods, heatwaves, and storms, among others. The adverse impacts of such events continue to pose an existential threat to African countries - even though the continent, which accounts for 17 percent of global population, contributes to less than 4 percent of global emissions. The continent is estimated to lose on average 5 percent of GDP per year in the event of an increase in global temperatures of 2℃. Owing to the adverse impacts of climate change, increasing to over 15 percent in a year of devastating impact of a climatic event, as was the case when Cyclone Idai hit Mozambique in 2019. This paper seeks to initiate discussion on how climate finance may be leveraged to support a just energy transition in the region. Specifically, the paper will: Identify sustainable approaches to facilitate Southern Africa’s just energy transition to a low-emission and climate-resilient future through climate actions that enhance the region’s green industrial base. This includes mitigation, adaptation and resilience building financing avenues. Examine the current state of climate finance in the region, the policy space for governments to pursue green transition pathways, and the infrastructure requirements of a JET. Explore the challenges member States face in financing the transition and identify national and regional collective approaches to leverage opportunities at all levels. Recommend country-specific and regional strategies which member States can design and implement to facilitate access to climate financing to complement domestic resources.