Africa's Green Economy Potential: Balancing Resource Wealth with Climate Challenges and Economic Justice
September 14, 2025
Africa, while being the world's lowest emitter of greenhouse gases, remains highly vulnerable to climate impacts but holds vast renewable and mineral resources essential for the green economy.
Despite these risks, Africa has significant opportunities to lead in the green economy by leveraging its resource wealth, provided it maintains ownership and adds domestic value.
A new UNU-INRA report highlights Africa's challenges and opportunities in balancing its green transition with development, justice, and sovereignty concerns.
Proactive planning and early action are crucial to mitigating economic disruptions and ensuring a just, resilient, and inclusive green transition, including giving Africa space for radical change.
Africa needs between $25 billion and $50 billion annually to achieve universal energy access by 2030, and about $200 billion annually to meet climate commitments, but current finance mechanisms favor loans over grants, increasing debt risks.
Regional integration through intra-African trade, policy alignment, and joint infrastructure projects is vital to strengthen bargaining power and optimize resource utilization.
Global crises, debt burdens, and weak adaptive capacity undermine Africa's sustainable development and heighten its climate vulnerability.
The EU’s Carbon Border Adjustment Mechanism threatens African exports and raises concerns about economic fairness, as Africa is asked to act as a carbon sink without compensation.
Justice and sovereignty are central to a fair green transition, ensuring Africa benefits from its resources and avoids repeating past patterns of extractive exploitation.
The report advocates for green industrialization powered by clean energy, focusing on critical mineral value chains, job creation, resilient infrastructure, and sustainable growth, with Africa retaining ownership and adding value domestically.
Despite economic and social costs from climate change, debt, and weak adaptive capacity, Africa continues to lead in green development, emphasizing resilience and sustainable progress.
Summary based on 2 sources
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Sources

Modern Ghana • Sep 12, 2025
New UNU-INRA report uncovers the economic, social and justice costs of Africa’s green transition
GhanaWeb • Sep 14, 2025
Africa's green transition carries economic and social costs – UNU-INRA report