Search
Close this search box.

Impact of Green Bonds in Africa

Africa has the technical potential to apply its natural resources to addressing climate-related issues and enhancing socio-economic development. Increasing temperatures and rising sea levels, changing precipitation patterns, and extreme weather threaten human health and safety, food and water security, and socio-economic development in Africa. The World Meteorological Organization (WMO) states that these effects impact ~110 million people in Africa, leading to annual economic losses of ~USD 8.5 billion, with women and girls 14 times more likely to be affected. These issues deepen existing access challenges such as limited clean energy—only half of the continent’s population have direct access to electrification and ~900 million rely on solid biomass fuels that lead to deforestation and indoor air pollution, which claims ~500,000 lives annually. In contrast, the continent has vast energy potential to meet its demand: 7,900 gigawatts (GWs) of potential solar, 461 GW of potential wind, and 15 GW of potential geothermal energy. Additionally, the region has some of the world’s largest freshwater systems, characterised by an extensive distribution and variability of surface waters that play a critical role in preserving biodiversity and nutrient cycles. Governments, development actors, and the private sector could harness this potential into dedicated projects to realize major environmental benefits.

Tags