Africa’s Green Future at Risk: Why Debt Relief and Climate Finance Must Work Together

At the Africa Climate Summit 2 in Addis Ababa, Jess Ayers, CEO of the Quadrature Climate Foundation, called for debt relief and climate finance to be treated as interconnected priorities for Africa’s sustainable future.

Ayers said Africa cannot unlock a “green and resilient future” without addressing the financial burden of debt alongside mobilizing resources for climate action. “The message is clear: debt relief and climate finance must go hand in hand if Africa is to unlock a green and resilient future. This is about investing in African innovation and leadership that can shape global solutions,” she said.

Her remarks came as leaders and experts gathered in Ethiopia to address the urgent challenges posed by climate change, with debt burdens continuing to limit the fiscal space available for African governments to invest in green growth.

Sara Jane Ahmed, Managing Director of the V20 Group of Finance Ministers of Climate Vulnerable Countries, reinforced the point. “Africa has enormous opportunities for new investments, we need to deal with the fiscal space issues and debt solutions need to be on the table sooner rather than later,” she said.

The call for action echoes the commitments made under the Addis Ababa Declaration, which was formally adopted at the summit. The declaration urges global partners to ensure equitable climate finance, unlock concessional funding, and support African-led initiatives that link economic stability with environmental sustainability.

Experts agree that Africa’s young population, abundant renewable resources, and growing innovation capacity place the continent in a unique position to lead in climate solutions. However, rising debt levels remain a barrier, limiting governments’ ability to fund renewable energy, resilience infrastructure, and conservation projects.

By connecting debt restructuring with climate finance, leaders argue Africa can gain the fiscal breathing room needed to invest in a low-carbon future. As Ayers put it, “This is about Africa’s ability to lead, to innovate, and to provide solutions not only for the continent but for the world.”

The outcomes of Africa Climate Summit 2 reinforce a broader shift in the global climate finance debate. The discussion is moving beyond aid, focusing instead on systemic reforms that link financial stability with climate resilience. For Africa, the path forward depends on aligning debt relief with climate investment strategies that empower governments to act decisively against climate risks.