Dr. Akinwumi Adesina, President of the African Development Bank, AfDB, has called for a major shift in how Africa’s vast natural resources are valued, advocating for the inclusion of “Green Gross Domestic Product”, Green GDP, in the continent’s economic calculations.
Speaking at the COP 29 High-Level Event on “Measuring the Green Wealth of Nations,” Adesina highlighted the underappreciation of Africa’s natural capital, which he believes has hindered the continent’s access to essential financial resources for sustainable development.
He pointed out that in 2018, Africa’s GDP was estimated at $2.5 trillion, yet its natural capital, including forests and environmental services, was valued at $6.2 trillion. By factoring in Green GDP, Adesina said Africa’s economic value could increase significantly. Preliminary AfDB estimates show that carbon sequestration alone could have raised Africa’s nominal GDP by $66.1 billion in 2022—more than the combined GDP of 42 African countries.
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“Africa’s natural resources, when properly valued, hold the potential to unlock trillions of dollars in wealth and financing for the continent,” he explained, stressing that this revaluation would also pave the way for the development of carbon markets in Africa. He also raised concerns about African nations giving away vast tracts of land for carbon credits, a practice that underpays them due to lower carbon prices in Africa compared to Europe.
Adesina warned that the ongoing “carbon grab” undermines African sovereignty, as lands rich in carbon are sold off, preventing nations from using the sequestered carbon in efforts to revalue their Green GDP.
Africa, with its vast natural capital—including 40% of the world’s clean energy potential, 65% of uncultivated arable land, and 25% of global biodiversity—has the resources to drive the global green energy transition. The continent is home to critical reserves of cobalt, manganese, and platinum, essential for electric vehicles and battery storage systems, which are expected to grow in value from $7.5 trillion to $59 trillion.
Adesina argued that proper valuation of these green assets would increase financial flows into Africa, improve credit ratings, and create more opportunities for green investments, ultimately enabling debt sustainability and supporting the continent’s sustainable development goals.
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