- The African Development Bank has launched a new initiative to promote resilient, green and sustainable growth.
- The African Green Bank initiative will be endowed with a trust fund of $1.5 billion.
The African Development Bank has launched a new initiative to promote resilient, green and sustainable growth. The African Green Bank Initiative, a model for deploying green financing across the continent, was launched at the just concluded COP27 in Egypt to support African countries in implementing their Nationally Determined Contributions (NDCs)
At the launch, the African Development Bank vice president for Energy, Power, Climate and Green Growth, Kevin Kariuki, said, “The Green Bank Initiative is a powerful tool for reducing financing costs and mobilising private sector investments in climate action in Africa”. In addition, the initiative would bolster the capacity of local financial institutions to build a robust pipeline of bankable green projects. He said, “It will do so through investing in energy efficiency and renewable energy sectors, climate-smart agriculture, resilient infrastructure, and nature-based solutions”.
The African Green Bank initiative will be endowed with a trust fund of $1.5 billion. It was conceived as part of measures to facilitate access to global finance from 3% to 10% annually by 2030. The Green Bank Initiative, as part of the African Financial Alliance on Climate Change (AFAC), will be supported by the African Green Finance Facility Fund (AG3F).
The initiative’s coordinator, Audrey-Cynthia Yamadjako, said green finance facilities, newly created or hosted in existing financial institutions, are “the solution to bring private finance at scale in climate action through the translation of the $2.8 trillion NDC implementation needs into well-structured and bankable projects.”