COP28 blog series

Empowering Africa: harnessing technology to scale climate action

  • Blog
  • 3 minute read
  • November 29, 2023

Technological advancement and innovation is sometimes seen as the silver bullet to achieve global net zero. It will play a central part in this journey, but shouldn’t be seen as the sole means to achieving net zero, and needs considerable scaling to play this role.

Man using technology to work on his crops.

There is global recognition for the role technology will play in climate action

The United Nations Framework Convention on Climate Change (UNFCCC) and the Paris Agreement highlight the importance of technology in combating climate change. The Technology Mechanism, a cornerstone of the UNFCCC, is central in the battle against climate change. Its two pillars, the Technology Executive Committee (TEC) and the Climate Technology Centre and Network (CTCN), work in tandem to expedite the transfer of environmentally sound technologies, particularly in regions vulnerable to climate impacts.

Africa has outlined, through the Nairobi Declaration (established at the 2023 Africa Climate Summit), the central role of technology in driving Africa’s economic growth while mitigating emissions for global decarbonisation. This includes advancing energy transitions, promoting renewable energy in industry, adopting climate-aware agriculture, prioritising biodiversity conservation, enhancing early warning systems, investing in climate-resilient urban infrastructure and establishing strong partnerships for climate adaptation with other regions.

“Time is running out to achieve the key goals of the Paris Agreement. The rapid scaling up and effective transfer of climate technologies are imperative to limit the global average temperature rise to 1.5 degrees Celsius and to build resilience to climate change. A reinvigorated Technology Mechanism is needed to unlock appropriate climate technologies everywhere in the world, and that is what this new work programme is designed to achieve.”

Simon Stiell, UNFCCC Executive Secretary

Africa needs support in unlocking its potential

Climate tech startups in Africa face a steep uphill climb due to limited financing options, as capital inflows remain limited compared to other regions. Estimates indicate that Africa needs an annual investment of around USD280bn between 2020 and 2030 to mitigate the most significant impacts of climate change and achieve its Paris-aligned climate targets. The current annual inflow of climate finance to the continent is substantially lower, amounting to just USB30bn.

While we need to scale investment in this space, 2023 witnessed a decline in the landscape of investment into climate tech start-ups, returning to levels that were last seen five years ago. This is counter to what we hope to see and what we need.

The potential of this challenge is amplified by infrastructure and skills limitations, particularly in remote regions. However, there is a unique opportunity to roll out decentralised climate solutions, where Africa once again has the opportunity to leapfrog its global counterparts similar to how it did this in the telecoms space, skipping landlines and moving straight to mobile.

Data and analytics on a tablet screen.

The youngest continent can use its developing status to its advantage

Based on previous examples, Africa has demonstrated its ability to rapidly adopt and advance in technological fields. In a similar manner, the continent can bypass traditional, centralised energy systems, which typically depend heavily on fossil fuels. Instead, Africa has the potential to embrace decentralised, eco-friendly technologies. These green solutions are particularly effective in remote areas and can be implemented at a large scale.

Examples of this climate technology and innovation in Africa are already being experienced through the UNFCCC’s TEC:

  • Rwanda has witnessed a substantial expansion of solar energy projects, providing clean electricity access to remote areas, transforming lives and livelihoods and attracting vital private investment.
  • Ethiopia has implemented climate-smart agricultural practices, bolstering resilience against erratic weather patterns and enhancing food security.
  • Morocco has emerged as a pioneer in embracing electric mobility, reducing air pollution and dependence on fossil fuels.

To foster growth in this space, we expect African nations at COP28 to continue pushing for action from the Nairobi Declaration that focuses on technology’s central role in driving growth and mitigating future contributions to and impacts from climate change. We expect this effort to gain more support from the global community and advance the following objectives:

Developing and deploying innovative climate solutions requires substantial investment. Financial commitments to research, development and innovative projects are crucial, with green bonds, climate finance and venture capital playing significant roles. This includes the necessity for innovation in investment and financing mechanisms to ensure the commercial viability of projects. Notable initiatives like the Africa Climate Tech Innovators Program, supported by the U.S. government with participants from various regions of Africa, and the UAE's commitment of USD4.5bn for clean energy investments, exemplify the global effort and significant capital involved in addressing climate challenges.

Grassroots innovation empowers local communities to create tailored solutions to climate challenges, with initiatives such as Kenya’s M-KOPA providing affordable solar power systems on a pay-as-you-go basis. Capacity building is essential, as seen in programmes like South Africa’s GreenMatter, which develops skills in biodiversity, and ensuring access to resources can drive change, exemplified by Nigeria’s All On that connects renewable energy entrepreneurs with funding and support.

To create an environment that’s conducive to growth, we need to build skills, encourage innovation ecosystems and implement supportive policies and regulations. Public awareness and engagement also play a vital role in facilitating the adoption of climate technologies. Collaboration is proving key, with major initiatives like the Climate-Smart Digital Technologies for Agriculture and Food Security benefiting over 30 million farmers. Additionally, the Initiative on Artificial Intelligence for Climate Action highlights the role of AI in climate mitigation, while homegrown innovations such as these 50 local climate solutions showcase Africa’s growing capacity for climate resilience and innovation.

As we approach COP28, the spotlight is on Africa’s potential to leapfrog to a sustainable, low-carbon future through climate tech innovations. While challenges remain, the continent’s entrepreneurial spirit and abundant natural resources position it well to play a role in the global transition to a green economy. By fostering innovation, enhancing access to financing and creating supportive policy frameworks, Africa can unlock the full potential of climate tech and contribute meaningfully to global climate action. Our next blog article further unpacks one of these key levers, namely the vital role of climate finance in supporting Africa’s climate response.

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Authors: Yulea Roopai, Associate, Sustainability and Climate Change, Strategy& and Matt Muller, Senior Manager, Sustainability and Climate Change, Strategy&

Contributors: Simphiwe Zungu, Associate, Strategy& and Lullu Krugel, PwC Africa ESG Platform Leader, Partner for Strategy& and Chief Economist

 

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Lullu Krugel

Lullu Krugel

Chief Economist and Africa Sustainability Leader, PwC South Africa

Tel: +27 (0) 82 708 2330

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