The World Bank estimates that climate change will drive millions of Africans into poverty by 2030. Since 1970, natural disasters on the continent have affected more than 460 million people and the situation will worsen if we fail to curb carbon emissions.
COP27 proposed the development of a Loss and Damage Fund, which aims to assist those countries disproportionately affected by the climate emergency.
Saliem Fakir, Executive Director of The African Climate Foundation, says the fund is in the early stages of negotiation, but resistance to the idea of redress means implementation is unlikely within the next decade. “In this time, a lot of devastation will occur in Africa,” he warns.
“The World Bank estimates that climate change will drive millions of Africans into poverty by 2030.”
The recognition of the need for such a fund comes at a time when climate litigation is on the increase. In April 2023, the UN General Assembly adopted a resolution that makes it easier to hold countries liable for the role they play in the climate emergency. In the US, cities and municipalities in Colorado, Maryland, California, Hawaii and Rhode Island are suing oil companies for the effects of climate change, setting a global precedent.
Fakir argues that, in the absence of reparations, there should be an increase in the flow of funds for adaptation and resilience. “Financial and non-financial mechanisms should be put in place to assist vulnerable countries to mitigate climate-related damage,” he says.
The World Bank’s Adaptation and Resilience Action Plan has indicated it will raise around US$50 billion by 2025, with a whole-of-government approach driving both public and private sector investments in adaptation. “Early and proactive adaptation and resilience-building actions are more cost-effective than addressing impacts after they occur,” the World Bank states.
“Business should invest in climate adaptation where possible.”
However, in June 2023, the fund balance stood at only US$772 million, with Germany, Sweden, Spain and Italy the most prominent donors.
Previous climate commitments have also not been honoured. The Green Climate Fund, a multilateral finance mechanism created under the UN Framework Convention on Climate Change and the Paris Agreement, was set up by 194 governments in 2010 to invest in climate resilience. Its pledge to raise US$100 billion a year by 2020 to help developing countries has not yet been forthcoming, which has created a trust deficit.
“It may be a decade before Africa receives climate reparations.”
Saliem Fakir, Executive Director of The African Climate Foundation
Fakir says a lack of political will is hampering progress on the Loss and Damage Fund too. He notes that more than US$150 billion has been pledged in support of Ukraine, since Russia could destabilise Europe if it achieves its military goals. “Money is easily raised for arms, but not for climate financing,” Fakir points out, adding that it may be a decade before Africa receives climate reparations.
Business should invest in climate adaptation where possible. The Global Center on Adaptation recommends ensuring operations and value chains are climate resilient and increasing the adaptive capacity of the communities in which they operate. This will enhance their reputation as trusted partners.
Read more about social justice and advocacy for development:
- Read the Overview of CSI spend on social justice and advocacy in 2023.
- Read the 2022 research findings: Overview of CSI spend on social justice and advocacy 2022.
Source: The original version of this article was published in the Trialogue Business in Society Handbook 2023 (26th edition).
