Austria, Belgium, Denmark, Germany, Ireland, Scotland, and other European states stepped forward to contribute “loss and damage” financing for African countries affected by climate change.
Other potentially major projects are in the works at COP27, even though the sums offered thus far pale in comparison to the billions required for disadvantaged communities to address the climate catastrophe.
The African Development Bank is recommending that vulnerable states establish local green banks to facilitate faster funding for renewable energy projects. The G7 nations are about to introduce a “Global Shield” fund to assist 58 poor nations affected by climate change.
In order to lessen the effects of climate change, the Bill and Melinda Gates Foundation promised to donate $1.4 billion to smallholder farmers in South Asia and Sub-Saharan Africa.
Significant FX inflows into African nations could support local currency markets, but given the history of broken promises, volumes that actually materialise are likely to be far lower than those anticipated.