BAKU, Azerbaijan (ChatnewsTV) — In a strong call to action at the 29th Conference of the Parties (COP 29), African Development Bank President Dr. Akinwumi A. Adesina urged global and African leaders to ensure that Africa’s vast natural resources are accurately valued in the continent’s economic assessments.
Speaking at the high-level event titled “Measuring the Green Wealth of Nations: Natural Capital and Economic Productivity in Africa,” Dr. Adesina stressed that a proper valuation of Africa’s environmental assets could dramatically transform the continent’s financial standing and drive sustainable development.
“While Africa contributes significantly to global public goods for tackling climate change, its vast natural capital has been undervalued,” Dr. Adesina declared.
“Africa is green endowed, but cash poor. This must change.”
Africa possesses some of the world’s most critical environmental assets, including 40% of the global clean energy potential, 65% of the world’s uncultivated arable land, and 25% of the planet’s biodiversity. The Congo Basin, the world’s second-largest carbon sink, plays a crucial role in absorbing carbon dioxide and combating climate change. Yet, these resources are not reflected in Africa’s GDP.
Dr. Adesina emphasized the need to establish a “Green Gross Domestic Product” (Green GDP) for Africa, which would include the value of natural capital like forests, biodiversity, and renewable resources. According to preliminary estimates from the African Development Bank, integrating carbon sequestration into Africa’s GDP would have boosted the continent’s nominal GDP by $66.1 billion in 2022—greater than the combined GDP of 42 African nations.
“Africa’s nominal GDP could be much higher if our natural capital is properly valued,” Dr. Adesina stated.
“This is where the trillions of dollars for the continent will come from.”
Warning Against the “Carbon Grab”
Dr. Adesina also highlighted the risks of Africa’s current approach to carbon markets. Many African countries have sold carbon credits at undervalued rates, leading to what he described as a “carbon grab” that has far-reaching consequences. These include underpayment for Africa’s carbon sinks, loss of sovereignty over valuable lands, and the inability to use carbon credits for revaluing national economies.
“The price of carbon in Europe could be as high as $200 per ton, but in Africa, it is as low as $3 to $10 per ton,” he said.
“This is a lose-lose proposition for Africa, and it must stop.”
The undervaluation of carbon and other natural assets, Dr. Adesina argued, limits Africa’s potential to leverage its vast green wealth for economic and social development. Proper valuation would not only boost GDP but also improve Africa’s credit ratings and access to financial markets, allowing for greater investment in green initiatives.
To support this transformation, the African Development Bank has published a report titled “Measuring the Green Wealth of Nations: Natural Capital and Economic Productivity in Africa.” The report provides a roadmap for integrating natural capital into Africa’s GDP calculations and underscores the importance of policy shifts to ensure sustainable economic growth.
“It is time to take Africa’s natural capital into consideration in its GDP. It is time for Africa to be green rich and cash rich.”
“It is time to measure Africa’s green wealth,” Dr. Adesina concluded.
Editor: Gabriel Ani
