AFRICA: To combat the climate crisis, the African Union (AU) proposed that the International Monetary Fund (IMF) consider issuing US$650 billion in special drawing rights (SDRs).
The 55-member group demanded that at least US$100 billion in existing SDRs be channelled to Africa through institutions such as the African Development Bank, with a group of donors to be established by the time the COP28 climate summit starts on 30 November 2023.
This updated list of demands is stronger than the initial announcement on 7 September in Kenya, which focused on debt relief and climate finance to fund renewable energy. The AU’s stronger demands come as Africa is the most affected by climate change, yet it barely contributes to the greenhouse gas emissions causing climate change. Other changes from the earlier declaration include the mobilisation of US$30 billion to invest in water projects by 2030, drawing attention to the “inordinate borrowing costs” levied on poor nations (a root cause of recurring debt crises) and a revaluation of the GDP of Africa to reflect its natural capital such as carbon sinks in forests. (Bloomberg)
