African Development Bank - Advancing Climate Action and Green Growth in Africa

13 energy, low-carbon transport, green buildings, sustainable agriculture, sustainable forest management and sustainable fisheries, contribute to both NDC and SDG targets. Concepts and practices such as ‘eco-innovation’, ‘eco-efficiency’ and ‘circular economy’ are also recognised as important for the green growth agenda, as they aim to spur innovation and enhance resource efficiency, which are two important drivers of green growth. Green growth for sustainable development in Africa Economic development in Africa has historically caused significant negative environmental and social externalities, which have not always been considered in development policies. Resulting environmental problems include the overexploitation of natural resources, including fish stocks, as well as deforestation, soil erosion, desertification, land degradation, and biodiversity loss. In the last three decades, Africa’s economies have grown at rates that matched or surpassed global trends, with an average real annual GDP growth of 5.4% between 2000 and 2010. In 2020, the continent saw its first contraction of 2.1% of GDP in half a century as a result of the COVID-19 pandemic. Although the continent had one of the lowest rates of COVID-19 deaths per capita in 2020, the Bank (2021a) estimated that if appropriate measures are not implemented, this could push 39 million Africans back into extreme poverty in 2021, with disproportionate effects on women. Tourism-dependent economies (-11.5%), oil-exporting economies (-1.5%) and other resource-intensive economies (-4.7%) were hardest hit, while non-resource-intensive economies reported a contraction of just 0.9%. The GDP of the continent is expected to grow by 3.4% in 2021 (African Development Bank, 2021a). Despite this relatively rapid growth, Africa’s anthropogenic GHG emissions remain the lowest of any continent. Per capita emissions are lower than two tonnes per capita, which is considered an equitable and sustainable level, in 48 out of 54 African nations. However, emissions are rising as African economies and populations grow, and economic growth continues to be driven by fossil fuel consumption and heavily dependent on natural resources. If Africa is to remain a low-emitting continent and sustain its economic growth while tackling the above mentioned environmental challenges, it must avoid the ‘grow now, clean up later’ model and chart a greener growth pathway that is driven by the implementation and achievement of the SDGs and NDCs on the continent. Africa is home to a significant share of the world’s natural resources, both renewable and non-renewable, with natural capital accounting for 30-50% of total wealth on the continent. It is also estimated that over 70% of people living in Sub-Saharan Africa depend on forests and woodlands for their livelihoods. However, many of these resources are used unsustainably while others are lost through illegal activities. The question is often raised whether Africa should prioritise economic growth over the environment or consider a holistic approach towards sustainable development. There are concerns that adopting a green growth model may negatively affect economic growth on the continent, as some green growth policies and technologies are thought to be less productive or more expensive to adopt than traditional practices. However, as the experiences of countries on the continent and elsewhere show, these concerns are no longer valid. Key cost-effective technologies for realising green growth are making their way to the African market. There are also plenty of opportunities for South-South cooperation and learning, as African and other developing countries are positioning themselves as pioneers of and large investors in green technologies and approaches. Africa has the youngest population of any continent. Its population will continue to grow in the coming decades, providing immense human capital potential for economic growth. The challenge of creating sufficient decent jobs for this young population remains a priority for African policymakers. The African Development Bank estimated that in 2015, 12 million youths entered the labour market, while only 3.1 million jobs were created. The benefits of economic growth are felt most widely when opportunities are created for all. The green growth model for economic development has been found to have much higher potential for creating such opportunities than the business-asusual growth model (ILO, 2018d). As adaptation is a priority for Africa, it is imperative that climate resilience be considered an integral part of the green growth agenda in the African context. Despite generating just 4% of global GHG emissions, Africa has some of the regions that are most vulnerable to climate change, where critical resources such as freshwater are affected, and livelihoods and food security threatened. One important example is Lake Chad, which has shrunk by 40% in the last 40 years due to a 7080% reduction in inflow into the lake and unsustainable levels of water use Introduction

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