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

This policy brief by the South African Institute of International Affairs examines the role of the G20 in supporting Africa's energy transition and climate financing. It critiques the Indonesian and Indian G20 presidencies for failing to address Africa's specific needs, noting a significant gap between the continent's climate funding requirements and actual inflows. The document proposes a strategic agenda for the upcoming Brazilian and South African presidencies, focusing on increasing the flow and quality of climate finance, reforming debt treatments, and enhancing participation in carbon markets.

• Africa faces a severe climate finance gap, receiving the lowest amount of global climate finance flows despite being the most affected continent. Between 2010 and 2015, Africa received $48 billion (23%) of the $212 billion disbursed globally, while Asia received $81 billion (48%). For the 2020–2030 period, Africa's average annual funding needs are estimated at $142 billion, but current inflows are only about $30 billion per year, creating an annual shortfall of $112 billion and a total decade gap of $1.1 trillion.
• Climate change is causing significant economic losses in Africa, which are projected to increase. The continent currently loses between $7 billion and $15 billion annually, a figure expected to reach $50 billion by 2040. Projected yearly GDP losses vary by country, reaching up to 17% in Côte d’Ivoire, nearly 9% in Mozambique, and 7% in Kenya.
• The transition to net-zero energy pathways imposes a disproportionate financial burden on sub-Saharan African (SSA) countries. To build necessary low-carbon infrastructure and support development, SSA countries must invest at least 1.5 times as much as a share of GDP as developed economies. Additionally, the public debt-to-GDP ratio in SSA is 56%, which limits the fiscal space available for climate financing.
• Africa possesses immense renewable energy potential that remains largely underutilised due to financial and technical barriers. The continent holds 60% of the world's best solar resources and 39% of global renewable energy potential, yet it has attracted only 2% of global renewable energy investments over the last decade. In 2019, fossil fuels still accounted for 77.1% of electricity generation.
• The document recommends that the Brazilian and South African G20 presidencies, supported by the African Union (AU), prioritize several financial reforms. These include providing below-market interest rate loans, re-channeling special drawing rights (SDRs) to multilateral development banks like the African Development Bank, and redesigning the Common Framework for Debt Treatments to accelerate debt relief and cancellation for climate-vulnerable countries.

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} }