International leaders are in Egypt for this year’s COP27 Summit, happening for the first time in Africa and aptly called “African COP.” The selection of an African destination for holding COP 27 is also very pertinent, given the climate change disasters faced by the continent. Africa has been time and again hit by deadly floods, droughts, and crop failures worsening its economic plight despite being responsible for only 3% of carbon emissions.
What is noteworthy is some of the game-changing initiatives launched at COP27 that can be of tremendous benefit to Africa. A new initiative, putting carbon credits up for sale in African countries was unveiled during the event. It has the potential to unlock billions in climate finance to support the economies of African countries. African Carbon Markets Initiative (ACMI) endorsed by African leaders, policymakers and carbon credit experts will not only mitigate climate change across Africa but also create jobs while protecting biodiversity. The leaders have set an ambitious target to grow the African voluntary carbon markets by producing 300 million carbon credits every year by 2030 and 1.5 billion credits annually by 2050. That can uncork US $6 billion for Africa’s climate finance and development needs.
This will be a major relief for Africa which has been struggling with its climate finance needs. It was estimated that the continent needs US$3trn to implement its nationally determined contributions (NDCs) under the Paris Climate Accords. There has been an increasing realization that, through a just transition, African countries can ensure a fairer redistribution of wealth and ensure that climate action is taken along with development. Another landmark announcement during the COP 27 is the announcement of the Concessional loan of €300 million by France and Germany to support South Africa’s transition from coal to cleaner energy.
Africa is also poised to enter the G20, a forum for international economic cooperation that comprises the world’s major developed and developing economies. South Africa has been the sole member of the G20 while the European Union (EU) is represented along with individual members like France, Germany, and Italy. Though the issue of an adequate representation of Africa’s 54 diverse economies has been regularly voiced by AU, it was not heeded to.
Leaving out Africa, which represents the voice of 1.37 billion people and its economic potential from the high table of G20 would be detrimental to the global economy. With its forthcoming presidency of G20 from 1 December 2022 till 30 November 2023, India now has a golden opportunity to rectify the underrepresentation of Africa by formally admitting the African Union (AU) as a permanent, full-time member of the G20. It will also be in line with the lofty message conveyed through the new logo India unveiled for its G20 Presidency- Earth juxtaposed with the lotus, theme — “Vasudhaiva Kutumba-kam” or “One Earth One Family One Future”. In short, this is a unique opportunity for India to prove itself as Africa’s partner with a difference.
These developments were preceded by Africa’s joint pitch for more mind and resource share at the just concluded General Assembly of the UN. Almost all African countries were critical of the lip service being done by the rest of the world for the development of the continent not backed by real action. At this critical juncture, an increasing awareness is evolving that the world needs Africa more than ever before. That is a good augury and that realization should be fortified to take Africa development process to its logical end.
