Driving a just transition for Africa

Africa faces significant challenges and opportunities when it comes to transitioning to a low-carbon, net-zero emissions economy while also building climate-resilient infrastructure. The continent needs between $200 billion to $300 billion per year by 2030 to achieve this transition. However, there is a clear gap between the need for investment and the reality of current financing. With over 3.3 billion people in Africa vulnerable to climate impacts, the urgency to act is undeniable. One key theme that emerges from the interview with Amal-Lee Amin, Head of Climate at the CDC Group, is the importance of understanding Africa's unique vulnerability to climate change and the need for sustainable solutions to mitigate its impacts. Amin highlights the significant investment required for sustainable infrastructure that can deliver low-carbon services while meeting the continent's development needs. She emphasizes the essential focus on solutions that can adapt to the various climate impacts affecting Africa, such as prolonged droughts, flooding, and extreme heat stress. Three key points discussed in the interview are: 1. **Addressing Climate Impacts**: Amin stresses the need to invest in businesses that provide solutions to support a more resilient development pathway. Initiatives like Climate Innovative Solutions are supporting early-stage companies in sectors like agriculture and fintech to develop innovative solutions. For example, CDC Group's investment in a company in Kenya, Prula, which offers pay-at-harvest insurance for smallholder farmers, showcases the potential for technology-driven solutions to address climate challenges. 2. **Investing in Climate Solutions**: CDC Group's new five-year strategy focuses on investing at least three billion pounds in climate solutions. This includes investing in renewable energy, technologies for decarbonizing the power sector like utility-scale storage and green hydrogen. By working with companies, funds, and financial institutions, CDC Group aims to ensure finance reaches entrepreneurs driving climate adaptation solutions. 3. **Creating a Sustainable Finance Roadmap**: Amin discusses the importance of developing green finance taxonomies and roadmaps, similar to initiatives in countries like India. By engaging governments and the financial sector, Africa can set out a clear plan for sustainable finance. Amin also highlights the concept of a 'just transition' in the financial sector, ensuring that as economies shift to net zero, new job opportunities are created, and communities are not negatively impacted. In conclusion, achieving a just transition to net-zero emissions in Africa requires a collaborative effort from governments, financial institutions, businesses, and investors. By prioritizing sustainable infrastructure, investing in climate solutions, and creating a sustainable finance roadmap, Africa can navigate the challenges of climate change while embracing the opportunities for a more resilient and sustainable future.