Each year, the call for climate action appears to be intensifying from scientists, activists, and civil society. As global leaders gather at this year’s 28th Conference of the Parties (COP28), a key aspect that is expected to garner attention is tangible measures that can be implemented by more countries to achieve global net zero.
Matthew Muller, PwC sustainability and climate change senior manager, says: “Technological advancement and innovation is sometimes seen as the silver bullet. The deployment of modern technology will undoubtedly play a central part in this journey, however, it should not be seen as the sole means to achieving net zero, and needs considerable scaling to play this role.”
The role that technology plays in climate action is globally recognised by the United Nations Framework Convention on Climate Change (UNFCCC) and the Paris Agreement. In Africa, through the Nairobi Declaration (established at the 2023 Africa Climate Summit), the continent outlined the central role that technology will play in driving Africa’s economic growth while mitigating emissions for global decarbonisation.
This includes advancing energy transitions, promoting renewable energy in industry, adopting climate-aware agriculture, investing in climate-resilient urban infrastructure and establishing strong partnerships for climate adaptation with other regions.
Africa requires support to unlock its potential
Considering where Africa currently stands on its net zero journey, we have observed that climate tech startups on the continent face a steep uphill climb due to limited financing options, as capital inflows remain limited compared to other regions.
Yulea Roopai, PwC sustainability and climate change associate, says: “Estimates indicate that Africa needs an annual investment of around $280-billionn between 2020 and 2030 to mitigate the most significant impacts of climate change and achieve its Paris-aligned climate targets. The current annual inflow of climate finance to the continent is substantially lower, amounting to just $30-billion.”
While investment needs to be scaled in this space, 2023 witnessed a decline in investment into climate tech start-ups, returning to levels that were last seen five years ago. “This is counter to what we hope to see and what we need,” Roopai says.
The potential of this challenge is amplified by infrastructure and skills limitations, particularly in remote regions. However, there is a unique opportunity to roll out decentralised climate solutions, where Africa once again has the opportunity to leapfrog its global counterparts — similar to how it did this in the telecoms space, skipping landlines and moving straight to mobile.
Africa’s advantage — its developing status
“Based on previous examples, Africa has demonstrated its ability to rapidly adopt and advance in technological fields,” Muller says. “In a similar manner, the continent can bypass traditional, centralised energy systems, which typically depend heavily on fossil fuels. Instead, Africa has the potential to embrace decentralised, eco-friendly technologies. These green solutions are particularly effective in remote areas and can be implemented at a large scale.”
Examples of the deployment of this climate technology and innovation in Africa are already being experienced through the UNFCCC’s Technology Executive Committee:
* Rwanda has witnessed a substantial expansion of solar energy projects, providing clean electricity access to remote areas, transforming lives and livelihoods and attracting vital private investment.
* Ethiopia has implemented climate-smart agricultural practices, bolstering resilience against erratic weather patterns and enhancing food security.
* Morocco has emerged as a pioneer in embracing electric mobility, reducing air pollution and dependence on fossil fuels.
“To foster growth in this space, we expect African nations at COP28 to continue pushing for action from the Nairobi Declaration that focuses on technology’s central role in driving growth and mitigating future contributions to and impacts from climate change,” Roopai says. PwC’s sustainability experts expect this effort to gain more support from the global community in an effort to advance investment, enable local entrepreneurship, and foster an enabling environment.