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saiia_op_361_financingafricasclimategoals-afc2a0ff1ebc5c50.pdf
This research paper analyzes the potential for African countries to finance climate mitigation and adaptation by redirecting explicit fossil fuel subsidies (EFFS) and increasing environmental taxes. While these domestic fiscal tools can contribute approximately 1.7% and 1.1% of Africa's GDP respectively, the author concludes they are insufficient to close the continent's overall climate finance gap of 5–10% of GDP. The paper recommends establishing independent fuel reserve authorities to stabilize prices and adopting gradual subsidy withdrawal strategies to avoid social unrest and inflation.
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Document type: Research paper