While Africa holds less than 1% of the world's green bond issuance, the Nordic Development Fund (NDF) is committing €500,000 to strengthen the continent's resilience to climate shocks. The funding, which will be allocated to the United Nations Development Programme (UNDP), was announced on the sidelines of an Economic and Social Council of the United Nations (ECOSOC) forum that closed on 20 April 2023 in New York, United States of America.
The Nordic Development Fund (NDF) is committed to supporting sustainable development in Africa. 500,000 to the Green Debt and Resilience Platform managed by the United Nations Development Programme (UNDP). The funds will be used to stimulate green bonds for the benefit of African countries most affected by the effects of climate change, particularly south of the Sahara where prolonged droughts undermine livelihoods and the health of populations.
“Africa’s economic and population growth and bold development ambitions mean that its energy consumption will increase dramatically over the coming decades. At a time when countries on the continent are facing significant challenges, this partnership will support efforts to accelerate climate finance as a contribution to the green transition,” explains Ahunna Eziakonwa, Director of the UNDP Regional Bureau for Africa.
In concrete terms, the UN organisation will use NDF funding to strengthen investments mainly in the areas of water, renewable energy and food security. This will contribute to the implementation of the Sustainable Development Goals (SDGs) and above all “to the creation of green jobs” according to Haoliang Xu, the UN Under-Secretary-General.
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At the same time, the NDF, led by Karin Isaksson, is working with the European Investment Bank (EIB), the Green Climate Fund (GCF) and the European Union’s Global Green Bond Initiative (GGBI) to build green infrastructure, initially in Angola, Cameroon and Uganda, and later in Ivory Coast, Namibia, Rwanda and Senegal.
Benoit-Ivan Wansi
