How debt for climate swaps can tilt scales at Cop28

World leaders are convening in Dubai this week with the pressure to address climate risks topping the agenda. CNBC Africa had the opportunity to speak with Dauoda Sembene, CEO of Africatalyst, to discuss Africa's key priorities at this year's COP28 summit. Sembene highlighted the importance of fair energy transitions, increased adaptation finance, and innovative debt-for-climate swaps as critical areas for Africa's success at COP28. With Africa requiring around $300 billion annually for climate initiatives, the continent is looking towards the international community for support in addressing climate finance inadequacies and debt challenges. As the global focus intensifies on climate action, Africa's demands for fair and inclusive solutions are at the forefront of discussions in Dubai. One key expectation from Africa at COP28 is to establish a just and fair energy transition, ensuring an inclusive and green transformation. Africa, as a low emitter contributing less than five percent of greenhouse gas emissions, seeks international support to implement their climate action plans. Sembene emphasized the need for the international community to provide the necessary financing for developing countries, particularly in Africa, to realize their climate goals. The focus on ensuring fairness in climate initiatives is paramount for Africa's success at COP28. Moreover, Africa is advocating for increased adaptation finance to address the impacts of climate change effectively. While there have been climate finance flows to developing nations, Africa has been vocal about the need for more resources dedicated to adaptation efforts. Calls for a doubling of adaptation finance have resonated from COP26 to the current COP28, signifying Africa's urgent need for support in building resilience to climate change. The establishment of the loss and damage fund during the early days of COP28 in the UAE has garnered positive reactions. With contributions from countries like the UAE and Germany totaling $260 million, the fund aims to assist vulnerable nations in mitigating climate impacts. However, while the initial funding is a step in the right direction, Sembene expressed concerns about the scale of financing required to address climate challenges comprehensively. The challenge remains in determining sustainable funding sources to replenish the fund and support developing nations effectively. Additionally, Sembene highlighted the potential of debt-for-climate swaps as a transformative strategy for Africa. With many African countries burdened by high levels of debt, the concept of debt swaps presents an innovative approach to tackle both debt challenges and climate action. Sembene referenced a report released during the Africa Climate Summit, outlining proposals to scale up the utilization of debt-for-climate swaps across the continent. The market for debt swaps could potentially exceed $800 billion, offering a significant opportunity for developing countries in Africa to address debt concerns while contributing to global climate efforts. As Africa navigates the complex landscape of climate finance and debt sustainability, the continent's representation at COP28 underscores the critical need for equitable solutions and financial support. With climate change posing unprecedented challenges, Africa's voice at the summit calls for concerted efforts towards achieving sustainable and inclusive outcomes for the continent and the world at large.