COP29: A Defining Moment for Climate Finance and Adaptation

As world leaders gather for COP29 - dubbed the “Finance COP” - the spotlight on climate finance has never been more critical. The conference comes at a time when global climate disasters are accelerating, with devastating hurricanes, heatwaves, and flooding becoming more frequent and severe. For countries like Nigeria, this moment is especially pivotal.

The UNEP Adaptation Gap Report 2024 is a wake-up call for us all. While noting measurable progress - with public adaptation finance flows in developing countries rising from $22 billion in 2021 to $28 billion in 2022 - the picture remains bleak. Current funding falls far short of the estimated annual $187-359 billion needed by 2030 to effectively close the global adaptation gap in developing countries.

For Nigeria, the implications are even more profound. According to the African Development Bank's (AfDB) Country Focus Report 2023, the country's adaptation finance amounted to only $663 million in 2019/2020, a small fraction of the estimated $17.7 billion annual financing it needs to meet its Nationally Determined Contributions (NDCs). Why is this a problem? Ranked as 35th from the bottom in the 2024 Notre Dame Global Adaptation Index, Nigeria faces severe threats from climate impacts that endanger critical sectors such as agriculture and infrastructure. Without significant increases in adaptation funding, these risks could erode already fragile economic stability and deepen social inequalities.

Key Implications for Nigeria

High Vulnerability, Low Funding

Nigeria is one of the most climate-vulnerable countries, yet adaptation funding has remained woefully inadequate. The severe consequences of underfunding include frequent and devastating climate events that jeopardize essential economic sectors and community well-being.

Economic and Social Risks

The AfDB report highlights that climate change impacts pose significant risks to vital sectors such as agriculture and urban infrastructure, including buildings. The economic repercussions of are immense, with one study predicting that climate change could result in a loss in GDP of between 6% and 30% by 2050. Flooding alone has caused billions in damages, displacing communities and straining public resources. Without increased adaptation funding, these impacts are likely to worsen, eroding economic gains and exacerbating social inequalities.

Private Sector’s Role

Public sources currently contribute 77% of Nigeria’s climate finance, while private investment lags at 23%. Mobilizing private finance is therefore essential. The AfDB estimates that Nigeria will need $247.3 billion to meet its climate and green growth objectives by 2030. Private sector participation must be amplified to bridge this significant gap. Encouragingly, Nigeria’s private sector contribution at 22.1% surpasses the African average of 14%, but it remains insufficient to close the funding shortfall.

The Path Forward

The path forward requires a unified global, regional, and local effort to scale up climate action at and post-COP29. While increasing the availability of climate finance is essential, for countries in the developing world, it is equally crucial to make these funds accessible. The WorldGBC Africa Manifesto for Sustainable Cities & the Built Environment emphasizes that barriers to accessing sustainable finance - such as complex conditionalities, lack of technical and financial expertise, and inadequate institutional capacity - are as much a part of the problem as the quantum of funding available! Limitations such as these often prevent local stakeholders who need funding most from benefiting effectively.

Addressing these challenges calls for flexibility and innovative approaches that recognize the unique limitations and contexts of developing nations, like Nigeria. Policymers and financial institutions must design funding mechanisms that accommodate smaller-scale projects, simplify access requirements, and invest in capacity-building initiatives to enhance technical knowledge and financial literacy. By prioritizing inclusive and blended financial instruments, funding institutions can ensure that adaptation projects are not just funded but are also practical and impactful at the local level.

Countries themselves must also take proactive measures to become ready for effective utilization of climate finance. This includes developing robust policy frameworks, improving institutional capacities, and fostering transparent governance structures. By building a foundation of readiness, countries can enhance their ability to access and deploy funds efficiently, ensuring that adaptation strategies are successfully implemented.

Public and private sectors must work in tandem to create investment-ready projects and develop sustainable finance solutions that attract substantial funding and implement innovative financing mechanisms. The aim should be to decrease barriers and enhance the ability of local and regional actors to engage effectively with available finance.

The NDC Scorecard for Sustainable Buildings Project

The NDC Scorecard for Sustainable Buildings Project is an example of a strategic tool that will support countries in assessing and refining their climate commitments. This multi-country collaboration, led by the World Green Building Council in partnership with green building councils from Nigeria, Egypt, the Philippines, Brazil, and Colombia, aims to develop a comprehensive tool to advance climate resilience and decarbonization within the built environment by evaluating and shaping building-related policies. Within the context of climate finance, one of its key objectives is to ensure that policies are:

• Practical and costable, enhancing feasibility for stakeholders.
• Opening avenues for green finance to boost climate-resilient development.
• Aligned with viable investment opportunities that support sustainable growth.

While projects like the NDC Scorecard provide critical frameworks for progress, the broader focus must be on enabling practical access to funds and fostering a climate-smart investment environment.

Call to Action

As stakeholders prepare for COP29 and the vital period that follows, the emphasis must be on turning climate ambition into actionable, finance-backed resilience. This is not just a call for Nigeria but a global imperative: to scale up adaptation funding, create accessible and inclusive financial pathways, engage private and public sectors, and implement transformative policies that withstand the growing challenges of climate change.

Now is the time for collective action to ensure that COP29 becomes a turning point for meaningful progress in climate finance and resilience-building worldwide.

About GBCN

Green Building Council Nigeria (GBCN) is the premier green building advocacy organization in Nigeria, committed to transforming the built environment through sustainability. Our strategic focus includes net zero carbon, resource circularity, and climate resilience. Operating through advocacy, education, standards, and certification, GBCN partners with stakeholders to promote environmentally and economically sustainable practices. As members of the WorldGBC and UNEP’s GlobalABC, we collaborate globally to amplify Nigeria’s voice in sustainable development. To learn more about us or participate in initiatives like the NDC Scorecard Project, contact sbs-nigeria@gbcn.org.ng or info@gbcn.org.ng.