N※N

Tanzania Calls for Diversified Climate Finance at UNEA

78

  //business-finance.news-articles.net/content/202 .. lls-for-diversified-climate-finance-at-unea.html
  Published in Business and Finance on Wednesday, December 10th 2025 at 10:30 GMT by The Citizen

• 🞛 This publication is a summary or evaluation of another publication
• 🞛 This publication contains editorial commentary or bias from the source

2025-12-10 224 x 224 / 5080 Bytes

2025-12-10 224 x 224 / 8533 Bytes

2025-12-10 212 x 224 / 10985 Bytes

2025-12-10 178 x 224 / 10451 Bytes

Tanzania Urges Diversified Climate Finance as Philanthropic Actors Step In to Bridge Africa’s Funding Gap at UNEA

At the United Nations Environment Assembly (UNEA) that convened in Nairobi this week, Tanzania’s delegation emerged as one of the most vocal advocates for a re‑imagined approach to climate finance. Spearheaded by Environment Minister Mizidiyah Msham, the country’s message was clear: the continent’s climate ambitions cannot be sustained on a single source of funding. Instead, a mosaic of public, private and philanthropic streams must be marshalled to close the widening financing gap that threatens to derail Africa’s adaptation and mitigation efforts.

The Climate Finance Gap: Numbers that Speak

While the United Nations Framework Convention on Climate Change (UNFCCC) has repeatedly pledged that developed nations will mobilise US$100 billion annually for climate action in developing countries, the reality on the ground tells a different story. The most recent UNFCCC review reported that Africa received roughly US$14 billion in 2022—less than 15 % of the target—leaving a deficit that dwarfs the continent’s needs. Tanzania, with its vulnerability to droughts, floods, and rising sea levels, underscores this shortfall in its own climate reports.

“The gap is not just financial but institutional,” said Minister Msham. “We need mechanisms that translate financial commitments into tangible projects that help our farmers, our coastal communities and our young people.”

Philanthropy as a Missing Link

In a turning point that surprised many observers, the UNEA session highlighted a surge in philanthropic engagement. A coalition of foundations and private donors, including the Bill & Melinda Gates Foundation, the Rockefeller Foundation, and the World Wildlife Fund, announced an unprecedented pledge to channel US$5 billion in the next five years into African climate projects. While still modest compared to the US$100 billion pledge, the infusion signals a willingness among the private sector to shoulder part of the responsibility.

Tanzania’s delegation welcomed this development but cautioned against over‑reliance on philanthropy. “Philanthropic money can act as a catalyst,” Minister Msham noted. “But it must be coupled with public finance, private sector investment, and innovative financing tools such as green bonds, climate risk insurance and blended finance mechanisms.”

She pointed to recent successes, such as the Climate Investment Funds’ Africa Climate Resilience Initiative, which leveraged donor capital to secure commercial loans for renewable energy projects. “When philanthropy dovetails with market‑based finance, the leverage multiplies,” she added.

Diversification: A Three‑Fold Strategy

The Tanzanian approach to diversified finance has three pillars:

1. Public‑Private Partnerships (PPPs) – The ministry is actively seeking PPPs that can bring technology and expertise to the country’s grid‑connected solar projects, thereby reducing reliance on fossil fuels.

2. Blended Finance – By combining grants, concessional loans, and commercial credit, blended finance can lower the risk profile of climate projects, making them more attractive to mainstream banks.

3. Climate‑Focused Instruments – Green bonds, catastrophe bonds and climate risk insurance are increasingly being considered as tools to mitigate the financial shocks of extreme weather events.

In an interview with The Citizen, Minister Msham explained how the ministry is working with the African Development Bank to develop a green bond framework that will fund reforestation and mangrove restoration projects across the Swahili coast.

Calls for Transparency and Accountability

Tanzania’s demand for diversified finance is coupled with a strong plea for transparency. “We want to see where every dollar comes from and how it is used,” said Msham. She called on the UNFCCC Secretariat to publish a real‑time dashboard that tracks climate finance flows to African nations, including philanthropic contributions.

The issue of accountability is not merely bureaucratic. Misallocation or mismanagement of funds can erode trust, discouraging future donors. As a result, the delegation urged the UNEA to adopt a “Climate Finance Stewardship Framework” that would standardise reporting and audit procedures across all stakeholders.

UNEA Outcomes and Future Steps

The UNEA session concluded with a draft resolution that acknowledges the importance of diversified finance, but also highlights that such a shift requires coordinated action from all parties. While the resolution is non‑binding, it serves as a reference point for future negotiations at the UNFCCC COP and other multilateral forums.

Tanzania’s proactive stance is expected to influence the forthcoming COP28 climate talks, where the question of how to scale up finance for developing countries will remain central. As the world moves closer to the 1.5 °C target, the ability of countries like Tanzania to galvanise a broad spectrum of financiers will be pivotal.

Bottom Line

Tanzania’s engagement at UNEA underscores a growing realization in Africa: the traditional reliance on government funding alone is no longer sufficient to meet the continent’s climate challenges. Philanthropic contributions, while vital, must be part of a larger, diversified financing architecture that blends public, private and innovative financial instruments. If the UN and its partners heed Tanzania’s call for transparency, accountability, and diversified finance, Africa could secure the resources needed to protect its people, ecosystems, and future.