EZA - Financing Sub-Saharan Africa's Energy Transition

• SSA countries achieved substantial pledges of renewed financing at COP26, although these fall short of estimates of the total funding needed for loss and damage from, adaptation to, and mitigation of the effects of climate change.
• Regional development and multilateral financial institutions are stepping in to fill the financing gap, although it is still not enough; the cost of the climate change transition is estimated at USD1.7 trillion in SSA alone by 2030 (100% of SSA's GDP as of 2020).
• Further, lags in regulatory development and aligning of countries' climate change agendas with economic development plans are hurdles to accessing allotted funding.
• Some SSA countries are likely to benefit from the opportunities derived from climate change mitigation and decarbonization in key sectors such as power, transport, agriculture, construction, mining, and natural gas.

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