Africa: Ensuring transparency & accountability in climate finance

Africa's journey towards climate finance accountability has faced numerous challenges as public finance institutions continue to fall short on integrating climate change financing into their mandates. Amy Gilliam Thorp, the Branch Manager of the African Climate Reality Project, emphasized the importance of holding countries accountable for their climate finance commitments in a recent interview with CNBC Africa. The key theme of the discussion revolved around the need for transparency and accountability in climate finance to ensure effective utilization of funds. Thorp highlighted the significant role played by public finance institutions in financing infrastructure and development projects across the continent. However, she expressed concerns about the continued investment of public funds in fossil fuels, undermining efforts to combat climate change. The upcoming report to be launched by the African Climate Reality Project sheds light on the performance of public finance institutions in aligning with global standards and best practices related to climate finance. The findings reveal a lack of concrete policies and plans to phase out fossil fuels and align with the Paris Agreement, posing a significant challenge in achieving emission reduction targets. Moreover, the report underscores the absence of limitations on financing fossil-fired power generation, indicating a critical gap in addressing climate change impact in the region. One of the key recommendations highlighted in the report calls for public finance institutions to establish fossil fuel finance exclusion policies with clear timelines and targets for a sustainable transition away from fossil fuels. Additionally, aligning policies with the Paris Agreement targets by setting measurable goals to reduce greenhouse gas emissions is deemed essential. The Fair Finance Coalition Southern Africa aims to leverage the findings of the report to facilitate dialogue between civil society groups, community-based organizations, and public finance institutions post COP27, fostering a better understanding of expectations and promoting adherence to international standards and best practices.