- AFDB to set up a $1.5 billion green finance facility.
- The fund aims to encourage investment in climate finance needs in Africa.
The African Development Bank (AfDB) is setting up a $1.5 billion green finance facility to help meet surging demand for money to develop clean energy and defend infrastructure against floods, storms and rising seas exacerbated by global warming.
The AfDB plans to partner with commercial banks and governments to fund projects because it’s a way to develop a sustainable pipeline of well-structured projects. The fund aims to encourage investment in African climate finance needs, which aren’t being met by cash-strapped African governments or developed nations.
The lender aims to raise $100 million by the end of 2023 and the total of $1.5 billion by the end of 2025, a small proportion of the continent’s financing to adapt to a warming planet.
Initial funding will partly come from the Climate Investment Funds and other partners. The issue of climate financing is expected to take centre stage at next month’s UN climate summit as developing nations demand more support from industrialized countries that prospered for nearly two centuries at the planet’s expense.