The African Development Bank (AfDB) has commissioned a study for the establishment of national climate change funds and “green” banks in Africa. The study will be conducted by the Coalition for Green Capital (CGC) and will improve access to green finance in Africa.
AFRICA: AfDB requests research to promote creation of “green” banks
This may soon facilitate access to green finance in Africa. The Coalition for Green Capital (CGC) will conduct a study for the upcoming creation of a series of climate change funds and green banks for the African continent. This study is commissioned by the African Development Bank (AfDB), in partnership with the Climate Investment Fund (CIF). Once the results of this study are available, the AfDB will proceed with the creation of national climate change funds and green banks to provide financing to African states. The aim here is to make the financial resources necessary to fight climate change on the continent more easily available.
An initiative that the Director of Development of Global Green Banks, Andréa Colnes, welcomed: “For countries to have better access to climate change financing and to fully engage the private sector, the climate change financing system must shift to a national financial capacity that can channel capital to the projects and markets where it is most needed.”
During the Green Bank Design Summit, held in Paris in March 2019, 23 developing countries were tasked with developing a new model for mobilising and accelerating investment in clean energy. The study recently ordered by the AfDB is a result of this decision. For its implementation, the Coalition for Green Capital plans to involve six African countries. The results will be presented at the 2020 edition of the Green Bank Summit. With this measure, the AfDB hopes to reduce the complexity of the process of raising funds from African states.