The World Bank has warned that the current level of climate adaptation funding which is insufficient could trigger extreme poverty in Africa by 2030.

Speaking during the Africa Carbon Forum in Kigali that is also discussing sources of climate finance and how to access them, James Close, the director of climate change at the World Bank Group said not addressing climate change could plunge 100 million more people into poverty by 2030 of which 43 million would be in Africa.

This could happen due to lower crop yields, higher food prices and negative health impacts from climate change if no coping mechanisms are put in place.

He said millions of Africans could be hurt by further warming that will cause disastrous consequences for the region in the form of heat extremes, increased risk of severe drought, crop failures every two years.

The Bank warns that there could be a 20% reduction in major food crop yields and by the end of the century, up to 18 million people might be affected by only floods every year.

To combat the huge financing gap, the World Bank prepared the Africa Climate Business Plan as an important step in mobilizing climate finance to fast-track Africa’s climate adaptation needs while reducing greenhouse emissions.

The Bank says that the current level of climate adaptation funding in Africa is insufficient at about $3 billion per year and is not rising at the rate necessary to meet future needs.

Close told the participants at the Africa Carbon Forum that the World Bank plan estimates a need of $19bn from different sources by 2020 as finance to help Africa adapt to climate change effects.

The plan also notes that further results could be achieved by 2025 at a cost of about $21 billion.

Daniele Violetti, chief of staff at United Nations Climate Change Secretariat said; lack of commitment means the costs of climate change are projected to be higher, especially in some least developed and island developing countries are severely affected by climate change.

Anthony Nyong, the division manager, environment and social protection at AFDB stressed that as efforts to reduce emissions Africa Renewable Energy Initiative will benefit from a pledged finance of $10bn from several sponsors to enable Africa produce 300 gigawatts of electricity by the year 2030.

Rwanda faces climate effects

Minister of Natural Resources of Rwanda, Vincent Biruta said: “Rwanda felt the severe and tragic consequences of climate change last month when 56 of our citizens were killed in floods and landslides in the northern and western parts of the country.”

He added, “This extreme weather event also left many homeless and is a clear illustration of the high level of vulnerability to climate change that we face. However, we believe the continent can overcome these kinds of challenges if we work as one. This is why the 2016 Africa Carbon Forum is so crucial.”

Biruta shared Rwanda’s own Green Fund (FONERWA) that has mobilized $100m and has approved 33 investments.

“The fund is investing in a range of initiatives, from landscape restoration and water resource management to clean energy and sustainable housing. To date, the fund’s investments have employed more than 20,000 people in green jobs and protected close to 10,000 hectares of land and water bodies,” he said.

He said the country has set up the ambition to be a developed, climate resilient and low carbon economy by 2050.

“Rwanda is planning to put in place systems for emission tracking to monitor report and verify any progress made towards greenhouse gas emission reduction. Such concrete achievements are needed towards green development and climate resilience,” said ONE UN representative, Mr. Lamin M. Manneh.

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Climate Action Can Drive Sustainable Development in Africa

Action on climate change in the form of green policy, finance and market approaches can drive sustainable development in Africa, government, business and civil society representatives heard on the opening day of Africa Carbon Forum.

“Just as the risks of climate change are immense, so too are the rewards of climate action if we invest in our people and our planet,” said Vincent Biruta, Rwanda’s Minister of Natural Resources.

In December 2015 in Paris, countries adopted a new comprehensive climate change agreement, central to which is nationally determined action and international cooperation. Driving it all will be private and public investment.

World Bank analysis has estimated that not addressing climate change could plunge 100 million more people into poverty by 2030. Of those 43 million would be in Africa.

“Turning challenges into opportunities requires concrete action, collaboration and commitment,” said Mr. Biruta. “I am sure we are up to the task.”

Africa Carbon Forum is an annual gathering aimed at spurring climate investment, through sharing information on policy, such as use of markets and mechanisms, financial opportunities, and cooperative initiatives arising from the international response to climate change.

What the organizers of Africa Carbon Forum 2016 are saying:

“Africa is going to play a critical role in the spread of markets under the Paris Agreement. Numerous regional governments are keen to leverage international markets to achieve their nationally-determined contributions, and support from both the private sector as well as policy leaders will be key to ensuring Africa can deliver on its targets. In the lead up to the Marrakech COP22 in November this year, the ACF2016 provides a strategic platform for these exchanges to take place.” – Dirk Forrister, President and CEO, International Emissions Trading Association

“Countries in Africa feel the dangers of climate change, but I’m confident they will also see the tremendous push that climate action can give to sustainable development. With the right climate policy choices, and by working together, countries can spur investment that benefits people and the atmosphere. In fact, action on climate is action for sustainable development.” – Daniele Violetti, Chief of Staff, United Nations Framework Convention on Climate Change

“Trade can help African countries, individually and together, leverage the various co-benefits of climate policies. It can also help transfer innovations from market to market, within Africa and with the broader developing world. Without trade flexibility, the costs of climate change are projected to be higher, especially in some least developed and island developing countries that are most severely affected by climate change. It is thus important is to consider the large – and largely unexplored – role international trade can play as part of the solution.” – Bonapas Onguglo, OiC Trade and Environment Branch, United Nations Conference on Trade and Development

“The very first Africa Carbon Forum in the post-Paris era will pave the way for actions that put Africa’s green and sustainable development at center stage. We are excited that this forum will provide the opportunity for a diverse audience of public and private sector stakeholders to meet and discuss how investments in climate actions can advance the Sustainable Development Goals of Agenda 2030. Once realized, an inclusive, low-carbon development pathway can have a truly transformational impact on the well-being of communities across the African continent.” – Jo Scheuer, Director for Climate Change and Disaster Risk Reduction, Bureau for Policy and Programme Support, United Nations Development Programme

“The total funds needed in the region to tackle climate change is well over $3 trillion, as per the estimates African countries submitted in Paris last winter. This is a sizeable amount, but we're committed to contributing our part, and already helping mobilize financial and technical support so African countries can move towards taking action on the ground. For example, our African Climate Business Plan aims to mobilize approximately USD19 billion as a contribution towards resilience.” – James Close, Director for Climate Change, World Bank Group

“The African Development Bank is committed to ensuring that the climate change issue is a developmental issue. Access to energy is critical to meeting Africa’s climate mitigation commitments and its needs for sustainable development. It is therefore imperative that adequate long-term finance is made available. We need to massively scale up Africa’s access to finance.” – Anthony Nyong, Division Manager, Environment and Social Protection, African Development Bank

“With the Paris agreement as the foundation, countries are now looking towards implementation. This will require accelerating existing initiatives and finding new solutions and building new partnerships, which can facilitate capacity-building and unlock new investments and finance for a climate resilient low-carbon development future for Africa. The opportunities for the Africa Region are indeed promising, and the Africa Carbon Forum presents itself as a much needed platform for sharing knowledge, experiences and new ideas which will benefit Africa and its people.” – John Christensen, Director, United Nations Environment Programme DTU Partnership