Keywords : Partnership; HDP-N; Silo; Sharing; Root Cause; Collective
Our research shows the substantial financial requirements and the existing gaps in funding climate change mitigation and adaptation in the Sahel and its neighbouring regions. In order to meet the climate finance ambitions of these countries by 2030, an estimated USD 305 billion is needed. However, current pledges from their own governments (USD 26 billion) and Western donors (USD 23.5 billion) total just under USD 50 billion, revealing an 85% (USD 279 billion) funding gap in financing the green transition in the Sahel and broader West African regions towards 2030.
Thus, to create low-carbon pathways, climate finance received in the region will need to grow exponentially. While the Sahel region accounts for less than 1% of global greenhouse gas emissions and is among the world’s most vulnerable to the effects of climate change, it received only 4% of global climate financing between 2015 and 2019.
Figure: Evolution in climate finance commitments towards the Sahel region and its littoral neighbours, 2000-2019
Source: This graphic was developed by OAM Consult based on OECD DAC climate-related development finance statistics, 2021.
To increase low-carbon pathways in the Sahel, the UN and national partners need to establish the necessary conditions and capacities for climate financing.
Key Take-aways
The research highlights a significant funding shortfall for climate change mitigation and adaptation in the Sahel and neighbouring regions. To bridge this gap and support the transition to a low-carbon economy by 2030, concerted financial efforts are urgently needed.
Substantial Funding Requirements: The Sahel requires an estimated USD 305 billion by 2030 to meet climate finance ambitions, addressing a stark gap in funding for sustainable development and climate initiatives.
Current Funding Insufficiency: Pledges from local governments and Western donors total nearly USD 50 billion, revealing an 85% funding shortfall for the green transition in the Sahel and broader West African regions.
Increasing Climate Finance: Although the Sahel contributes minimally to global emissions, the region's climate finance has increased from USD 3 billion in 2015 to USD 5.5 billion in 2019, with further increases expected as international support grows.
Need for Enhanced Collaboration: To effectively employ and increase climate finance, a collaborative approach involving the UN, donors, and international financial institutions with national governments is crucial to build capacity and create conducive conditions in the region.
To accelerate climate finance to the region, the UN, donors, and international financial institutions need to collaborate closely with national authorities and partners in the region to foster the necessary conditions and build the capacity needed to absorb and utilise these funds effectively.
Snapshot: Overview of Climate Finance Modalities:
Unconditional national budgets under the Nationally Determined Contributions (NDCs);
Bilateral overseas development assistance (e.g., earmarked ODA from bilateral donors);
Multi-donor international funds (e.g., earmarked ODA through multilateral development banks);
International investment funds (e.g., GFC);
Carbon markets (e.g., clean development mechanisms (CDM) or voluntary carbon markets);
Private sector (e.g., small and medium-sized enterprises (SMEs));
Private foundations (e.g., Bill and Melinda Gates Foundation).
