MICHAEL FOUNDETHAKIS: Finance a key focus at ‘Africa’s COP’

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Continent needs about $1.6-trillion to assist it in adapting to and mitigating the risks of climate change, according to African Development Bank calculations

The city skyline of Cairo beyond the Giza pyramid complex in Giza, Egypt, on Wednesday, November 2 2022. On November 6, leaders around the world will gather in Sharm el-Sheikh for the annual UN Climate Change conference, known this year as COP27. Picture: BLOOMBERG/SIMA DIAB

At COP26 in 2021, the EU, France, Germany, the UK and the US pledged $8.5bn in first-round financing to assist SA with energy transition projects. In October the SAcabinet approved an investment plan for the financing package, the details of which will be announced at COP27.The SA deal is expected to serve as a model for other emerging markets, in particular the structure of the financing — grants, loans and concessional funding.

The US is mobilising $200bn for developing countries over the next five years as part of the PGII. The funding will be in the form of grants, financing and private-sector investments. One of the main pillars will be “tackling the climate crisis and bolstering global energy security”, Some deals have already been announced, including a $2bn solar energy project in Angola.

 

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