By The Respondents ReporterTanzania faces a TZS31.8 trillion funding gap in its efforts to address climate change by 2030, with the government seeking to mobilise additional resources from development partners and private investors to finance adaptation and resilience projects.
The country requires $19.3 billion (about TZS51.1 trillion) to implement its second Nationally Determined Contribution (NDC 2.0), but has so far mobilised $7.3 billion (about TZS19.3 trillion), leaving a shortfall of $12 billion.
The funding gap was disclosed by the Commissioner for External Finance in the Ministry of Finance, Mr Rished Bade, who represented Finance Minister Khamis Mussa Omar at a side event during the Finance and Trade Day of the 31st Conference of the Parties (COP31) to the United Nations Framework Convention on Climate Change in Antalya, Türkiye.
The event, held at the Tanzania Pavilion, focused on strategies to mobilise the outstanding financing before the 2030 deadline.
Mr Bade said the proposed measures were based on resolutions reached during the 2026 Tanzania Climate Finance Roundtable held in Dar es Salaam on October 5.
The funding challenge comes as Tanzania seeks to strengthen its capacity to respond to climate-related risks while protecting livelihoods, infrastructure and economic activities.
The government has identified three priority areas for closing the gap: strengthening climate finance institutions, preparing investment-ready projects and mobilising capital through innovative financing instruments.
The first pillar involves developing a National Climate Finance Strategy and strengthening institutions responsible for mobilising, coordinating, managing and monitoring climate-related resources.
This will include improving institutional capacity, climate finance planning, climate budget tagging and expenditure tracking across the Ministry of Finance, the Vice-President's Office, Zanzibar authorities, sector ministries, local government authorities and financial institutions.
"The approach will focus on institutional capacity, climate finance planning, budget tagging, expenditure tracking, sustainable financing systems and monitoring through existing systems within the relevant government institutions," Mr Bade said.
The second pillar centres on preparing priority projects capable of attracting investment, addressing the need to translate climate commitments into bankable projects.
Priority sectors include climate-resilient agriculture, water security, renewable energy, clean cooking, resilient infrastructure, sustainable management of natural resources and the blue economy.
The third pillar involves expanding access to capital while reducing risks associated with climate investments.
Proposed financing instruments include blended finance, credit guarantees, climate insurance, green bonds, results-based financing, long-term lending and carbon finance.
Mr Bade said grants and concessional financing would be strategically deployed to improve project viability, reduce risks and attract commercial investment.
"Climate adaptation and resilience investments that deliver significant public benefits but offer limited commercial returns will receive special attention," he said.
Development partners have also outlined areas in which they will support the implementation of the financing framework.
The International Monetary Fund (IMF), through AFRITAC East, has committed to providing technical assistance and training on climate budget tagging, while the World Bank will strengthen the operational capacity of Climate Finance Units in Mainland Tanzania and Zanzibar through the SCALE project.
The United Nations Development Programme (UNDP) has pledged support for Workstream One, while the African Development Bank (AfDB) will support Workstream Two, particularly through its Project Preparation Facility, with an emphasis on climate-related investments.
The Global Environment Facility (GEF) has also expressed interest in supporting all three pillars, particularly blended finance under its ninth replenishment cycle, GEF-9.
The financing framework is aligned with Tanzania's Development Vision 2050, Zanzibar's Development Vision 2050, the Fourth Five-Year Development Plan (2026/27–2030/31), the National Climate Change Response Strategy (2025–2035) and the Paris Agreement.
However, the remaining TZS31.8 trillion gap presents a significant financing challenge, making collaboration between the government, development partners and private investors critical to delivering the country's climate commitments.
The key test will be whether the proposed financing arrangements can translate into actual investments that protect vulnerable communities, strengthen essential infrastructure and support climate-resilient economic growth by 2030.