This policy brief focuses on F20 recommendation 3: Transform the Global Financial System to Drive Climate and Development Goals and F20 recommendation 4: Strategically Align and
Mobilise Flexible Financial Resources with Climate Goals and Sustainable Development.
Africa faces acute climate vulnerability, growing debt burdens, and significant gaps in financing
for sustainable development. Despite contributing less than 4% of global greenhouse gas
emissions, Africa is disproportionately affected by climate change, with rising temperatures and
extreme weather threatening its economy and population [1]. The continent needs an estimated
$250 billion annually between 2020 and 2030 to implement its climate goals, but has historically
received significantly less than other regions, particularly for adaptation [2]. Current global
financial structures often limit African representation in decision-making, reduce access to
concessional finance, and fail to adequately integrate climate and social risks into debt
sustainability analyses [3].
In this context, the strategic mobilisation of innovative and flexible financial resources becomes
central to closing Africa’s climate finance gap and ensuring that investments are socially
inclusive, resilient, and aligned with the continent’s development priorities.
The F20 Recommendation 3 calls for reforming international financial institutions (IFIs),
expanding access to liquidity, and mobilising innovative finance to align global financial flows
with climate and development goals. The DWG’s focus on inclusive and resilient development
through social protection floors complements this approach. SDR-backed finance can be
intentionally directed toward projects that strengthen social protection and support historically
excluded communities, including women, Indigenous Peoples, and economically disadvantaged
groups, ensuring that macro-level financial instruments translate into equitable, on-the-ground
outcomes.
