AfriCatalyst, a Dakar-based global development advisory group, has urged African leaders to develop a framework for issuing African Methane Abatement Bonds (AMAB).
This urgent appeal accompanied the launch of AfriCatalyst’s report that sheds lights on the alarming surge in methane emissions across the continent and emphasises the need for immediate global action to mobilise the resources needed to address this environmental crisis.
The report reveals that methane emissions in Africa have risen at an annual rate of 2 percent from 1990 to 2022, contributing a staggering 14 per cent to the total global methane emissions.
Notably, 19 African countries are responsible for 80 per cent of the continent’s methane emissions, with Nigeria, Sudan, the Democratic Republic of Congo, and Egypt contributing half of the total.
These emissions predominantly emanate from the agricultural sector (51 per cent), energy production (35 per cent), and waste management (14 per cent).
While almost all African nations have outlined their Nationally Determined Contributions (NDCs), the lack of adequate financing impedes achievement of these goals.
Only 2 per cent of global climate financing was allocated towards methane abatement last year, and sub-Saharan Africa received a mere 6 percent of global methane financing.
“Financing methane action faces a number of challenges. The first relates to the limited awareness on methane abatement in Africa and how to finance methane abatement efforts across the continent. There is strong evidence that if we do have ambitious methane abatement objectives in Africa, certainly we will be able to make the continent meet its commitments under the Paris Accord,” remarked Daouda Sembene, AfriCatalyst’s CEO, and co-author of the report.
According to AfriCatalyst, a collaborative effort by the 19 top African methane emitters could unlock additional funding by leveraging available financing from various partners, including European Union (EU) grants which could total nearly 6.4 billion Euros under the Neighborhood, Development, and International Cooperation Instrument – Global Europe (NDICI).
Such financial support could be complemented by technical assistance from reputable institutions such as the African Development Bank (AfDB), International Monetary Fund (IMF), and the World Bank.
Recognising that additional financing alone will not suffice, AfriCatalyst is also calling for innovative solutions aligned with the continent’s realities and specific circumstances.
According to the International Energy Agency (IEA), the required spending needs for low-income and middle-income countries amounts to $6.8 billion, while the continent needs $15-20 billion to reduce energy-related methane emissions by 75 per cent by 2030.
Innovative strategies, including increased domestic revenue mobilisation, leveraging philanthropic funds, and recycling Special Drawing Rights (SDRs) through multilateral development banks like the AfDB, could fill the gap.
The AMAB framework would also create a private investment vehicle to support African Small and Medium-sized Enterprises (SMEs) and entrepreneurs in developing practices that contribute to methane emission reduction. --OGN/TradeArabia News Service