Professional services firm, PwC Nigeria, has called on governments across sub-Saharan Africa to find funding for addressing pressing climate change challenges, or risk long-term negative socio-economic impacts.
According to reports, sub-Saharan Africa has a lower carbon intensity than the global average and that of the G7 developed nations.
The region also contributes only 3% of global greenhouse gas emissions. However, despite this smaller emissions footprint, sub-Saharan Africa is the most vulnerable region globally to the adverse effects of climate change.
During the discourse, PwC Africa International Development leader, Jon Williams, highlighted the ongoing impact of the climate crisis already having many sub-Saharan African countries spending between 2% and 9% of their fiscal budgets in unplanned allocations to respond to extreme weather events.
The firm, therefore, restates the need to provide support to public sector clients on righting their fiscal trajectory through Public Finance Management (PFM) transformation.
This, the firm highlighted, is a necessary step towards freeing up domestic capital for the climate agenda and creating transparency and confidence around the management of fiscal funds that international funders will look for.
Partner, PwC Nigeria, Gbenga Adepetu, explained further that African countries need around US$2.8tn during 2020-2030 to implement their climate action commitments and Nationally Determined Contributions (NDCs).
He said, “As of last year, African governments had committed just over US$250bn of domestic public resources, which equates to about 10% of the total cost. The remaining US$2.5tn is the region’s climate finance needs. This figure is equal to the value of its total GDP during 2022.”
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