30.2 C
Accra
Saturday, December 7, 2024
Independent AfricaAfrican leaders push for natural assets to count in GDP

Date:

African leaders push for natural assets to count in GDP

African leaders urge inclusion of natural capital in GDP calculations.

In a statement released on November 13 at COP29 in Baku, they highlighted Africa’s forests’ vital roles in carbon capture, pollution control, and soil and water retention.

The event, titled Measuring the Green Wealth of Africa, was co-hosted by President Denis Sassou Nguesso of Congo, Kenya’s Dr. William Ruto (represented by Musalia Mudavadi), and African Development Bank President Dr. Akinwumi Adesina.

Attendees included Presidents Paul Kagame of Rwanda, Emmerson Mnangagwa of Zimbabwe, and Faure Gnassingbé of Togo.

President Sassou Nguesso stressed the importance of valuing Africa’s underappreciated natural assets as integral to national wealth.

“We are doing useful work for Africa and the rest of the world, in contributing to the acceleration of the recognition of the environmental dividend,” he said.

Kenya’s President Ruto said at the heart of the leaders’ conversation is the need to “ensure that Africa’s ecosystem services such as carbon sequestration and pollution control are valued as global public goods.

He said, “by appropriately valuing our green wealth, countries can unlock financial flows into investments to boost our economies and even improve our credit ratings.”

President Paul Kagame of Rwanda said Africa is a key player in the fight against climate. “Unfortunately, Africa’s key obstacle remains access to climate finance.”

The Rwandan leader said he fully supports the bold agenda to measure the continent’s natural capital and added, “we are not asking for handouts but for the world to pay for something that has tremendous value for all of us.”

The leaders commended the African Development Bank Group for its leadership and dedication to finding innovative mechanisms to mobilize the required financial and technical support for natural capital accounting and measuring the Green GDP of African countries.

The Bank has produced a report on “Measuring the Green Wealth of Nations: Natural Capital and Economic Productivity in Africa”.

Adesina said the report sets out key actions to value and integrate natural capital in the measure of Africa’s GDP.

“Africa contributes significantly to global public good for tackling climate change with its vast resources of natural capital, its vast natural capital has been undervalued,” he pointed out.

This situation, he said, “makes Africa to be green rich but cash poor,” adding, “while the GDP of Africa was estimated at $2.5 trillion in 2018, this was 2.5 times lower than the estimated value of its natural capital, evaluated at $6.2 trillion, which partly includes some valuation of the ecosystem services.”

He stated that, according to the Bank’s initial estimates and “under very conservative assumptions,” Africa’s nominal GDP in 2022 could have risen by $66.1 billion if carbon sequestration was factored in. This amount exceeds the combined GDP of 42 African nations!

The Bank Group president voiced concern over what he called a ‘carbon grab,’ where numerous African nations are leasing out their extensive lands for carbon credits but receiving minimal benefits in return.

“While the price of carbon in Europe is high and could be as high as $200 per ton because of the strict EU Emission Trading Standards, carbon price in Africa could be as low as $3 to $10 per ton,” Adesina pointed out.

Consequently, Adesina said, Africa gets underpaid for carbon because its carbon sinks are undervalued.

Furthermore, “the sequestered carbon on the lands can no longer be used as part of the nation’s nationally determined contributions,” he said, “that means countries lose sovereignty over their lands.”

According to Adesina, “the ongoing carbon grab in Africa is a lose-lose proposition.”

In their statement, African leaders committed to collaborating with other developing nations and regions, including Latin America, the Caribbean, and Asia, to form a powerful global coalition advocating for the inclusion of natural capital in national GDP calculations.

[forminator_poll id="710479"]

Latest stories

2024 polls: Mahama visits father’s grave in Bole-Bamboi to pray

The presidential candidate for the NDC, the former president,...

Broken seal causes confusion at Mampong polling station

Tensions rose at the Mampong Infantry Jnr Primary School...

Video: Voters hoot at driver carrying food reportedly sent by Ursula Owusu-Ekuful in Ablekuma West

Voters in the Ablekuma West Constituency have allegedly rejected...

NPP and NDC supporters engage in heated argument at Kasoa polling station

A heated argument broke out between supporters of the...

Voting delayed at Mankessim Anglican School 2 over indelible ink shortage

At Mankessim Anglican School 2, voting has been delayed...

Dec polls: Heavens won’t fall if you lose – Goodluck Jonathan to political candidates

Former Nigerian President Goodluck Jonathan has encouraged politicians to...

Voters report missing names and verification issues at polling stations

The 2024 elections have been marked by reports of...

Related stories

South Sudan secures over 280,000 of oral vaccines to fight cholera

The Ministry of Health of South Sudan, with support...

Sudan on the brink of becoming a failed state – Report

Sudan, ravaged by war, is at risk of becoming...

2 deaths recorded after boat capsized in Madagascar

At least 24 people have lost their lives after...

85-year-old South African anti-apartheid writer Breytenbach is dead

Acclaimed anti-apartheid writer and activist Breyten Breytenbach, who was...

Finnish police detain Nigerian secessionist leader as Nigeria presses for extradition

Nigerian authorities have announced plans to request the extradition...

Uganda makes first avocado export to Spain

Uganda has marked a significant milestone in its agricultural...

Check out Africa’s most innovative countries

Per the 2024 Global Innovation Index (GII), Africa is...

LEAVE A REPLY

Please enter your comment!
Please enter your name here