How can the G20 support Africa’s energy transition and sustainable financing priorities and concerns?

The document argues that while African nations have submitted ambitious Nationally Determined Contributions (NDCs), they face a massive climate finance gap and high debt burdens that hinder a just energy transition. It critiques previous G20 presidencies for treating developing countries as a monolith and failing to address Africa's specific needs, such as the disparity between mitigation and adaptation funding. The brief recommends that the Brazilian and South African G20 presidencies focus on increasing the flow and quality of finance through concessional capital, debt-for-nature swaps, and the re-channeling of special drawing rights, while also enhancing Africa's participation in carbon markets and attracting private sector investment.

• Africa receives a disproportionately low share of global climate finance despite being the most affected continent. Between 2010 and 2015, Africa received 23% ($48 billion) of disbursed climate finance, while Asia received 48% ($81 billion).
• There is a significant funding gap for Africa's climate needs between 2020 and 2030. Average annual needs are estimated at $142 billion, but current inflows are only about $30 billion per year, resulting in an annual shortfall of $112 billion and a total decade gap of $1.1 trillion.
• Climate finance is skewed toward mitigation rather than adaptation. Between 2010 and 2019, 48% of climate finance in Africa went to mitigation and 41% to adaptation, mirroring a global trend where mitigation accounted for 59% of finance for developing countries.
• Climate change causes severe economic losses in Africa, with annual losses currently between $7 billion and $15 billion, projected to reach $50 billion by 2040. Some countries may see yearly GDP losses of up to 17% in Côte d’Ivoire, 9% in Mozambique, and 7% in Kenya.
• Sub-Saharan Africa faces extreme energy poverty and underutilised renewable potential. While the region holds 60% of the world's best solar resources and 39% of global renewable energy potential, 57% of the population lacks electricity access, and renewables accounted for only 14% of the total energy supply in 2020.
• High public debt and the cost of the net-zero transition create fiscal barriers. Sub-Saharan Africa's public debt-to-GDP ratio is 56%, and the net-zero transition requires these countries to invest at least 1.5 times as much as a share of GDP as developed economies.

APA

South African Institute of International Affairs (2024). How can the G20 support Africa’s energy transition and sustainable financing priorities and concerns? https://saiia.org.za/research/how-can-the-g20-support-africas-energy-transition-and-sustainable-financing-priorities-and-concerns/

Chicago

South African Institute of International Affairs. How can the G20 support Africa’s energy transition and sustainable financing priorities and concerns? 2024. https://saiia.org.za/research/how-can-the-g20-support-africas-energy-transition-and-sustainable-financing-priorities-and-concerns/.

Wikipedia

{{cite report |author=South African Institute of International Affairs |title=How can the G20 support Africa’s energy transition and sustainable financing priorities and concerns? |date=9 January 2024 |url=https://saiia.org.za/research/how-can-the-g20-support-africas-energy-transition-and-sustainable-financing-priorities-and-concerns/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{southafricaninstituteofinternationalaffairs2024how, author = {{South African Institute of International Affairs}}, title = {{How can the G20 support Africa’s energy transition and sustainable financing priorities and concerns?}}, institution = {South African Institute of International Affairs}, year = {2024}, month = jan, url = {https://saiia.org.za/research/how-can-the-g20-support-africas-energy-transition-and-sustainable-financing-priorities-and-concerns/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }