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Tunisia and Egypt are the largest for climate financing

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Tunisia and Egypt are the largest for climate financing
Tunisia and Egypt are the largest for climate financing

Tunisia: Tunisia has access to 48.3% of the annual funding required for climate action. According to the African Development Bank’s North Africa Economic Outlook 2023, it enjoys comparatively more significant financial flows than other North African nations, together with Egypt (35.8% of funds).

The report, which deals with the theme of “Mobilizing Private Sector Financing for Climate and Green Growth,” noted that there are “considerable disparities between the region’s countries: Tunisia with 48.3% of the needed annual funding and Mauritania with 2.2% of its needs to meet its Nationally Determined Contributions, or NDCs.”

The research emphasized that the public sector and bilateral donors, which account for nearly 80% of total flows, are the main sources of climate financing in North Africa, with the exception of Libya.

18% of the contribution came from North African nations, while the remaining 2% came from the private sector.

Renewable energy, transportation, agriculture, and water management are the primary priority sectors for climate finance.

According to the bank, financing flows differ by sector in each nation. Investments in renewable energy and energy efficiency were prioritized in Tunisia and Morocco, while sustainable agriculture was the focus in Algeria and Mauritania.  A wide range of fields and areas of activity require funding for climate action and green growth in Africa.

While demands for climate adaptation are concentrated on agriculture, water, infrastructure and building, disaster preparedness, and health, needs for climate mitigation are mostly related to transportation, energy, and industry.

Between 2020 and 2030, North Africa will need $280 billion to enable its economic transition to a low-carbon and climate-resilient one.

The three North African nations with the biggest investments in energy are Egypt ($36 billion), Algeria ($23 billion), and Morocco ($12 billion).

The committed funding for Libya and Tunisia are $3 billion and $0.3 billion, respectively. In the meantime, government money is insufficient, which is why the bank is urging private sector participation.

Private climate investments totaling around $842 million were recorded in North Africa, with 41% ($345 million) going to Morocco, 39% ($332 million) to Egypt, and 12% ($104 million) going to Tunisia.

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