Africa is launching a bold new initiative to raise $50 billion per year for homegrown climate solutions, marking a pivotal moment in the continent’s quest to lead on climate innovation and resilience. The announcement came during a high-level climate summit in Addis Ababa, hosted by Ethiopian Prime Minister Abiy Ahmed.

The initiative, outlined in a draft declaration seen after the summit, centres around the creation of two key mechanisms: the Africa Climate Innovation Compact and the African Climate Facility. Together, these frameworks aim to mobilise catalytic finance for transformative climate projects across the continent.

A United Push for Climate Action Despite Global Uncertainty

Even as geopolitical uncertainty casts a shadow over global climate cooperation, African nations are choosing to move forward with renewed urgency. The declaration underlined the continent’s determination to uphold and accelerate its climate goals, even in the absence of consistent international support, such as the United States’ past withdrawal from the Paris Agreement.

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The continent’s 54 nations are increasingly grappling with the harsh realities of the climate crisis. Landslides, prolonged droughts, devastating floods, and record heat have ravaged communities in 2025, underscoring the need for faster and more targeted investments in adaptation, resilience, and low-carbon development.

1,000 Climate Solutions by 2030

Ethiopia’s Prime Minister Abiy Ahmed, who has positioned himself as a regional leader on climate action, stated during the summit's opening ceremony that the new initiative aims to deliver 1,000 viable climate solutions by the end of the decade.

Ethiopia has already showcased its own efforts. Its ambitious reforestation programme, launched in 2019, has planted billions of trees to combat land degradation. More recently, the country inaugurated a massive hydroelectric dam one of the largest in Africa as part of its strategy to scale up renewable energy and reduce reliance on fossil fuels.

These national efforts are now being used as a springboard to inspire a pan-African model for climate innovation.

$100 Billion Green Finance Deal Reached

As the summit progressed, African leaders oversaw the signing of a major financial mobilisation deal. Development finance institutions and commercial banks across the continent agreed to work together to secure $100 billion for investments in green power infrastructure.

This deal signals a shift in Africa’s strategy moving from dependency on fragmented international funding toward more coordinated and homegrown financial instruments capable of delivering large-scale climate investments.

Bridging a Trillion-Dollar Gap

Despite this momentum, the financing gap remains vast. Africa is estimated to need more than $3 trillion by 2030 to meet its climate objectives. However, according to the summit's draft declaration, the continent received only $30 billion in climate finance across 2021 and 2022.

This shortfall threatens to derail progress on vital projects related to adaptation, clean energy access, biodiversity protection, and climate-smart agriculture.

The declaration called for stronger international commitments, with a clear emphasis on increasing the proportion of climate finance provided as grants rather than loans. Grants are especially important for adaptation measures, which often struggle to attract private sector investment but are critical to protecting vulnerable communities.

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A Call for Global Partnership

Africa’s new climate strategy is not only an appeal for funding, but also a demonstration of leadership. By proposing a $50 billion-per-year mobilisation target, African leaders are setting their own agenda and demanding a seat at the table when it comes to shaping global climate finance architecture.

The African Climate Innovation Compact and African Climate Facility are designed not just as funding tools, but also as platforms for collaboration, knowledge exchange, and technology transfer. Their success will depend on both regional coordination and genuine partnership from the international community.

As Prime Minister Abiy put it, Africa is ready to deliver solutions but it cannot do so alone. The continent is stepping up with ambition, and the world must now respond with investment, support, and solidarity.

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