Newly inaugurated U.S.A president, Donald Trump is breaking the headlines for policy changes, including signing out of the Paris Agreement climate act. This excludes the United as major contributor of the $100 billion climate finance goals, and commitment to progressive climate action objectives.
As a result, Africa and the global south’s poor countries are the biggest losers. Remember, they are the lowest greenhouse gas emitters, and mostly affected by climate change calamities.
Additionally, President Trump’s move may trigger more western countries to ignore their commitmen to the Paris Agreement. Also, the move may discouraged various climate funding contributors like banks partnering with U.S government and associations.
Investments, especially in the renewable energy projects depending on the U.S.A climate finance support faces collapse. The Africa Clean Energy Corridor, is amongst projects highly relying on international funding.
Therefore, such initiatives’ solutions might come through debt, which can jeopardize sustainable development in developing countries. Also, the large-scale involvement of private investors risks factors like exploitation due to lack of international oversight. There are cases where private corporations create and provide energy for industrial resources and not for household use.
While Trump’s withdrawal for the sake of “American Prosperity” poses a great risk, it presents the global south an opportunity to enhance regional economic collaborations.
For instance, Africa can focus on intiatives like the African Continental Free Trade Area (AfCFTA), and African Union’s Africa Renewable Energy Initiative (AREI) to improve green energy investments, and climate funds, respectively.
Moreover, continent’s like Africa have vast potenttial in mining unique minerals and renewable energy. By leveraging sustainable financing systmes such as collaborative finance and green banks, African countries can attract investment while reducing dependency on uncertain international commitments.
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