Climate Change: Africa Deserves Huge Compensation

Despite its minimal contri­bution to global emissions, Africa bears the brunt of climate change’s devastat­ing impacts. The continent, respon­sible for only 2.8% of global emissions from 1850 to 2021, faces the toughest challenges from climate change.

The continent witnesses more frequent and severe disasters like floods, earth­quakes, and droughts. In 2021, seven of the ten most vulnerable countries to climate change were in Africa. At COP27, a significant milestone was achieved with the establishment of the Loss and Damage Fund (LDF), aimed at addressing challenges in vul­nerable developing countries, particu­larly in Africa.



Governments formal­ly established the Fund in November 2023 on the first day of COP28. The $792 million pledged during COP-28 to set the LDF in motion was welcomed by developing countries, especially those in Africa. Africa requires between $290 bil­lion and $440 billion between 2020 and 2030 to finance loss and damage needs, highlighting the significant gap between pledges and the current realities.

The purpose of the LDF is to as­sist developing countries’ vulnerabil­ities to the adverse effects of climate change. It is to assist in responding to economic and noneconomic loss and damage associated with extreme weather and slow-onset events. The Nairobi Declaration of September 2023 emphasized the operationalisa­tion of the LDF as agreed at COP27.

The Declaration resolved for a mea­surable Global Goal on Adaptation (GGA) with indicators and targets to assess progress against negative impacts of climate change. The eligibility criterion for the LDF is to prioritise all developing countries, especially those facing vulnerability to climate change. It em­phasises on a country-led approach to ensure that accessing the fund is inte­grated within national frameworks and respects the unique situations and contexts of different countries grappling with climate-induced loss and damages.

Developing countries within the Transitional Committee have advocated for universal eligibil­ity for the LDF, emphasising on a fair access, determined by climate events, impacts, and necessities. The LDF’s accessibility is critical for Africa. The eligibility criteria are designed to be inclusive, prioritising vulnerable developing countries.

The proposed allocation system fo­cuses on specific challenges faced by communities, catering to both immediate and long-term needs. This country-led approach ensures that accessing the fund aligns with national frameworks and addresses unique situations. The decision-making process pri­oritizes data from the Intergovern­mental Panel on Climate Change (IPCC), while acknowledging the limitations in data collection for some regions.

Additionally, a minimum allocation floor for Least Developed Countries (LDCs) and Small Island Developing States (SIDS) is being considered. These elements, if im­plemented effectively, position Africa to benefit significantly from the LDF. African countries, with their diverse climate disasters such as droughts, floods, and rising sea lev­els, particularly in the Sahel, Horn of Africa, and equatorial regions, are potential candidates for LDF support.

However, success depends on addressing capacity issues within African countries and ensuring their active role in LDF decision-making. Implementing the LDF in vul­nerable developing countries faces challenges such as limited resources versus vast needs, transparent eligi­bility criteria, direct fund access by local communities, and integration into national climate strategies. A ro­bust mechanism for monitoring fund utilisation is crucial for transparency and accountability.

Despite the progress at COP28, sig­nificant gaps remain. Wealthy nations have yet to shoulder their fair share of responsibility. The initial pledges to the LDF fall far short of what’s needed to address the widespread hu­man rights violations caused by years of climate inaction.

Discussions are ongoing to establish new, measurable climate finance goals by 2024, aiming for an annual target of $100 billion. While some developed nations have made initial pledges, the contribution from the United States remains disap­pointingly low compared to the EU and even some developing nations. These discrepancies raise crucial questions from an African perspec­tive: What is the official definition of loss and damage? How will the LDF be sustained financially? Which crite­ria will guide the allocation of funds? These challenges notwithstand­ing, Africa has an opportunity.

The LDF aims to address the devastating impacts of extreme weather events on the continent. However, work re­mains on establishing the fund’s gov­ernance structure, with an evaluation scheduled for 2027. The establishment of the LDF is a significant step towards climate jus­tice for Africa.

Yet, the current pledges fall short of the estimated needs. Mov­ing forward, increased contributions from developed nations are crucial to ensure sustainable and predictable financing. Africa, for its part, must advocate for clear definitions and criteria for loss and damage funding, ensuring the needs of its most vulner­able communities are addressed.

Furthermore, active engagement in setting and meeting new climate finance goals by COP29 is essential. Aiming for the $100 billion annual tar­get is necessary to support effective national climate plans by 2025. These collective efforts hold the key to a fair transition and mitigating the devas­tating impacts of climate change on the continent.

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Malo is the Founder and CEO, Clean Technology Hub.