Exploring Operational Pathways for Article 2.1(c) of the Paris Agreement in Africa

The Case of Financing Climate Resilient Infrastructure in Africa

With climate change emerging as the defining challenge of the 21st century, the type of infrastructure we build today has far-reaching ramifications for country-level resilience. Infrastructure stands as the linchpin of sustainable development; however, years of chronic underinvestment, compounded by deficiencies in quality and accessibility, exacerbate Africa’s vulnerability to the impacts of climate change. Historically, infrastructure planning has not paid enough attention to climate resilience, leading to significant social, environmental, and economic consequences as countries face increasing climate risks. Evidence shows that for every USD 1 spent on climate-resilient infrastructure, USD 87 is spent on non-resilient infrastructure globally. This signifies the massive climate-resilient infrastructure financing gap, which is particularly severe in developing countries.

The third long-term goal of the Paris Agreement, Article 2.1(c), articulates the imperative to ‘make financial flows consistent with a pathway towards low emissions and climate-resilient development’. As such, this article has the potential to transform the financial sector by encouraging investments aligned with low-emissions and climate-resilient development. However, there is a limited global understanding on how to operationalise Article 2.1(c) within the context of pathways to climate-resilient development, as noted in the outcomes of the Sharm-El Sheik dialogues on Article 2.1(c). In order to realise a future of Paris-aligned investment flows, countries need to invest in climate-resilient infrastructure that is both resilient to climate hazards and contributes to the broader resilience of its environment. Closing the significant climate-resilient infrastructure financing gap and implementing Article 2.1(c) in Africa will require addressing the barriers faced by financiers and countries in transitioning their investments, particularly towards resilience. To date, African governments are the primary financiers of infrastructure. However, they require additional sources of finance to bridge the infrastructure gap and surpass financing challenges.

This pathway paper provides a roadmap towards operationalising Article 2.1(c) of the Paris Agreement within the context of infrastructure development in Africa. It explores operational pathways for aligning the financing of infrastructure projects with climateresilient development in Africa, contributing to sustainable development and poverty eradication in Africa.

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