Paying Africa's Climate Bill

March 7, 2024-A global approach to climate change requires private sector financial firepower
The world's poorest countries, especially those in Africa, are struggling to pay for a climate crisis they cannot afford.

More public debt is not the answer: climate investment needs exceed the lending capacity of multilateral finance institutions, and many African countries are already in a funding squeeze. What's needed are novel solutions-chiefly stepped-up private sector investment for climate action in poor countries. And these efforts cannot be simply country-based. They must be geared to achieve global goals for net zero greenhouse gas emissions.

The stakes in Africa are heightened because the continent will contribute the most to human population growth in coming decades. This will increase the need for funds to mitigate climate-warming emissions. At the same time, a greater share of the region's agriculture will be exposed to climate-linked productivity losses.