Climate action experts from across the globe have weighed down African countries' decry of being deprived substantial green funding by developed nations despite being overly hit by climate change effects they barely contribute to.
Africa contributes 2-3 per cent to the global greenhouse gas emissions annually.
The Vice Chair, UN intergovernmental panel on climate change Carlo Carraro, said although its unfortunate that African countries such as Kenya are still having huge gaps in their climate funding needs, the big question should be why are investors not pumping in enough.
"Investors are the ones with the climate action money, and it's in plenty. African countries need to position themselves better for these funds by making their investment climate more attractive," Carraro said.
"Investors are looking for markets that are offering better returns for their offings, and most countries right now in Africa aren't investor attractive."
Governments therefore need to prioritize making their economies more attractive for investors to attract more funding, he added in part.
He also called on developed nations to develop the zeal to protect Africa by making the continent their priority destination in matters green funding.
“Protecting Africa is protecting themselves considering the huge potential Africa has in climate action, especially carbon offsetting.”
On his part, CDP’s Paolo Lombardo cited high financial cost, lack of governance, limited technical expertise, projects costs and lack of reliable and consistent information as further barriers hindering increased green financing across the continent.
They spoke on Tuesday during the inaugural African climate change global business summit in Nairobi where the 2024 climate finance in Africa position paper was also presented.
The paper highlights the huge climate funding gap that exists in Africa, a constraint dragging back the continent's 2030 goals.
“Annual climate finance flows in Africa stand at only $29.5 billion, whereas the continent needs $277 billion annually to implement its NDCs and meet the goals," the paper reads.
it adds that much of the gap funding is expected to be external, with the experts at the forum saying relying on domestic finance wont be enough to realise the continent's green growth agenda.
“Only 18 per cent of the countries’ NDCs will be covered by domestic sources.”
Comparing the money directed towards adaptation and mitigation, the position paper notes that majority of private climate finance in Africa has been channeled into mitigation efforts, mainly focusing on the energy sector which remains the primary beneficiary, with over 80% per cent of investments directed towards it.
In contrast, adaptation projects received marginal attention from private investors due to perceived risks and uncertain returns.
Country specific, Kenya attracted a total of $7 billion (Sh938 billion) in green financing in the past five years to 2023, with much of the funds directed towards the agricultural sector.
The segment got close to $2.25 billion (Sh301.5 billion), followed by urban development and water sectors which received $1.37 billion (Sh183.5 billion) and $1 billion (Sh134 billion), respectively.
Sanitation and energy were the fourth and fifth most funded sector in the period under review while environment, finance access and transport were the least funded sectors.
Compared to our neighbors Ethiopia and Tanzania, the funding preference seemed to differ as environment took the largest share in Ethiopia while transport sector was the lead beneficiary in Tanzania.