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class="d-tc jxTipN d-mobile-only" data-x="mobileShare" data-url="https://www.bizcommunity.com/article/multilateral-banks-urged-to-boost-funding-for-africas-methane-reduction-255187a" data-title="Multilateral banks urged to boost funding for Africa's methane reduction" data-text="Multilateral banks urged to boost funding for Africa's methane reduction" href="http://www.sharethis.com/share?publisher=54869764-0f12-4063-99cd-a49c07279e8a&url=https%3a%2f%2fwww.bizcommunity.com%2farticle%2fmultilateral-banks-urged-to-boost-funding-for-africas-methane-reduction-255187a&title=Multilateral banks urged to boost funding for Africa's methane reduction&img=https%3a%2f%2fbiz-file.com%2fc%2f2411%2f757783-1200x624.jpg%3f5&summary=AfriCatalyst%27s+report+highlights+the+need+for+multilateral+development+banks+to+allocate+2.4%25+of+assets+annually+for+methane+reduction%2c+addressing+Africa%27s+environmental+and+health+challenges..." target="_blank" rel="noindex,nofollow"><span class="sb-share-testsite 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3000) } </script> </div></div><div class="kInstance-Summary">As methane emissions across Africa continue to rise and existing financing falls short of meeting international climate goals and fulfilling the Paris Agreement, the role of multilateral development banks (MDBs) is becoming increasingly important in supporting methane-reduction initiatives across the continent.</div><div class="kInstance-Body instance-box-mb"><div class="kContentImage kContentImage--no-alignment"><img src="https://biz-file.com/c/2411/757784.jpg" width="620" height="411" alt="Source:"><div class="flip-cap" style="max-width:620px">Source: <a href="https://www.pexels.com/search/cityscape/" target="_blank">Pexels</a></div></div><p>A new <a href="https://apo-opa.co/4eo01XT" target="_blank">study</a> by AfriCatalyst reveals that Multilateral Development Banks (MDBs) would need to allocate just 2.4% of their assets to meet the $48bn annual funding requirement for reducing methane emissions by 2030.</p><p>Methane emissions pose a significant, but underfunded, threat to Africa’s climate resilience, with the continent receiving only about 1% of global climate finance in 2021-2022—roughly $13.7bn.</p><p>Targeted financing for methane abatement could yield significant benefits for the continent, addressing both environmental and health impacts. For example, achieving a 50% reduction in methane emissions by 2030 in the 19 countries responsible for 80% of Africa’s methane emissions would require $10bn, but would result in an estimated $4,300 per ton of methane avoided in economic and social benefits.</p><p>Methane emissions in Africa largely come from agriculture (50.6%), energy (34.2%), and waste (15.2%), with the greatest concentration found in just 19 countries.</p><p><p><b>Methane’s climate impact</b></p></p><p>As methane has a global-warming potential 80 times greater than carbon dioxide, it is a major contributor to climate change, driving extreme weather events, poor air quality, and health issues such as respiratory diseases.</p><p>"The energy sector, which holds the greatest potential for methane reductions, received less than 1% of that funding. Given the limited financial resources of many African countries, it is imperative to find sustainable solutions that support the transition to more sustainable energy systems and eco-friendly production and consumption models.</p><p>"Multilateral Development Banks (MDBs) must play a central role in developing mechanisms, practices, and innovative instruments for methane abatement." outlines the new report.</p><p><b><p>Bridging methane gaps</b></p></p><p>The report Methane Abatement in Africa: The Role of Multilateral Development Banks highlights policy frameworks and financing measures MDBs can adopt to support methane-reduction projects in Africa and bridge the funding gap and align with the Paris Agreement targets.</p><p>These include tariff regulation for methane emissions in the energy sector, operationalising local carbon markets, mobilising additional financing through MDB Capital Adequacy Framework (CAF) reforms, and allocating local currency finance for methane projects.</p><p><p><b>Key findings</b></p><li>To meet the $48bn annual funding requirement for reducing methane emissions by 2030, MDBs would need to allocate only 2.4% of their assets.</li></p><p><li>With Africa currently utilising only 2% of its annual carbon-credit potential, with most credits concentrated in a few countries, MDBs can play a catalytic role in establishing local carbon markets, mobilising financial resources, and expanding market participation.</li></p><p><li>Modernising financial governance is crucial to enhancing MDBs’ commitment to climate goals, especially in developing countries where climate financing capacity is often limited.</li></p><p><li>The report also summarises how new and existing reforms and initiatives can help MDBs take a more prominent role in supporting African countries' methane-reduction efforts as the 2030 deadline approaches and urgent action is needed.</li></p><p>“Methane is a leading contributor to greenhouse gas emissions, and there is strong evidence that with ambitious methane-abatement efforts in Africa, the continent can meet its commitments under the Paris Agreement,” said Daouda Sembene, chief executive officer of AfriCatalyst.</p><p>“However, one of the major challenges we face is the limited awareness and debate surrounding methane abatement in Africa. 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