African leaders want more global taxes to fund climate action

African leaders have called for more global taxes to fund climate action, saying that the continent needs more resources to adapt to the effects of climate change.

The demand was made Wednesday in a declaration that will form the basis of Africa’s negotiating position at the upcoming COP28 summit in the United Arab Emirates.

The Nairobi Declaration was announced by Kenyan President William Ruto, who hosted the inaugural Africa Climate Summit, attended by leaders from over 50 countries.

Why this matters

The declaration acknowledged that Africa is already bearing the brunt of climate change, with more frequent and severe weather events, such as floods, droughts, and heat waves. It called for a “significant increase” in climate financing for Africa, including through a global carbon tax.

The declaration also called for reforms to international financial institutions to make it easier for African countries to borrow at affordable rates.

“This declaration will serve as a basis for Africa’s common position in the global climate change process,” read the document. “No country should ever have to choose between development aspirations and climate action.”

It added: “Decarbonizing the global economy is also an opportunity to contribute to equality and shared prosperity.”

$23 billion commitment

Governments, development banks, private investors, and philanthropists committed a combined $23 billion to green projects over the three days of the summit, including hundreds of millions of dollars to a major carbon markets initiative. However, the continent’s leaders acknowledged that these investments only scratch the surface of the region’s financial needs.

They called for more systemic changes, such as making it easier for African countries to borrow at affordable rates. They also demanded that major polluters and global financial institutions commit more resources to help poorer nations respond to climate change.

The Nairobi Declaration also appealed to world leaders to rally behind the proposal for a global carbon taxation regime. This would include a carbon tax on fossil fuel trade, maritime transport, and aviation. The declaration said that such a tax could be augmented by a global financial transaction tax.

The summit aimed to address the increasing exposure to climate change and its associated costs, both globally and particularly in Africa. With the expectation of escalating climate crises in terms of frequency and intensity, urgent action is required to mitigate these challenges.

Fluctuating weather conditions, rising sea levels, floods, droughts, and temperature variations are eloquent evidence of the devastating effects of climate change in Africa.

Nigeria, the continent’s most populous nation, had the most devastating flood disaster in 2022. The disaster affected at least 25 of the 36 states, rendering over a million people homeless and killing over 600 people.