Implications of COVID-19 for Climate Finance in Africa

The paper analyzes how COVID-19 has disrupted climate finance, noting a tension between the need for economic recovery and the fulfillment of the $100 billion annual climate finance pledge. It highlights that while the pandemic created opportunities for 'green recoveries' through stimulus packages, early funding often favored carbon-intensive sectors. The authors emphasize a growing need for adaptation finance and the mobilization of private capital to support a sustainable transition in Africa.

• There is a significant lack of consensus on the operational definition of climate finance, which hinders accountability and transparency. The African Group of Negotiators (AGN) and Oxfam argue that private and non-grant finance, as well as revenue-generating loans and green bonds, should be excluded from these totals.
• The COVID-19 pandemic has placed immense economic pressure on developing countries, particularly in Africa, increasing the likelihood that debt forgiveness will be a primary economic priority in 2021.
• While the pandemic offered a chance for 'green stimulus' packages, early G20 recovery efforts disproportionately supported fossil fuel industries. The G20 committed approximately $208.73 billion to fossil fuel industries compared to $143.02 billion for clean energy since the start of the pandemic.
• Stimulus measures in South Africa have been criticized for continuing to support environmentally intensive sectors rather than driving a green transition.
• Adaptation finance remains critically underfunded, accounting for as little as 5% of total climate finance spend. Annual adaptation costs for developing countries are currently $70 billion and are projected to reach $300 billion by 2030.
• The pandemic has shifted focus toward the private sector to fill funding gaps. The COP26 Private Finance Hub aims to ensure all financial institutions have credible strategies to reach net zero carbon by 2050 and to improve climate-related disclosures.
• African nations are showing a trend toward net zero goals, with 33 African states expressing a desire to achieve net zero emissions by 2050, provided they receive adequate financial support.

APA

GILDER, A., & RUMBLE, O. (2021). Implications of COVID-19 for Climate Finance in Africa. South African Institute of International Affairs. https://saiia.org.za/wp-content/uploads/2021/05/Occasional-Paper-320-gilder-rumble.pdf

Chicago

GILDER, ANDREW, and OLIVIA RUMBLE. Implications of COVID-19 for Climate Finance in Africa. South African Institute of International Affairs, 2021. https://saiia.org.za/wp-content/uploads/2021/05/Occasional-Paper-320-gilder-rumble.pdf.

Wikipedia

{{cite report |last1=GILDER |first1=ANDREW |last2=RUMBLE |first2=OLIVIA |title=Implications of COVID-19 for Climate Finance in Africa |publisher=South African Institute of International Affairs |date=May 2021 |url=https://saiia.org.za/wp-content/uploads/2021/05/Occasional-Paper-320-gilder-rumble.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{gilder2021implications, author = {GILDER, ANDREW and RUMBLE, OLIVIA}, title = {{Implications of COVID-19 for Climate Finance in Africa}}, institution = {South African Institute of International Affairs}, year = {2021}, month = may, url = {https://saiia.org.za/wp-content/uploads/2021/05/Occasional-Paper-320-gilder-rumble.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }