The African Development Bank (AfDB), through the African Green Bank Initiative, has launched the creation of four green banks in Africa as an innovative response to the lack of climate finance made available at each successive COP meeting. It also aims to help the capitalization of Rwanda’s green investment facility as part of its mission to support Africa overcome its climate finance barriers. By 2030, the estimated fund needed by African countries to meet the Paris Agreement Nationally Determined Contributions (NDCs) is approximately 2.8 trillion USD.
Over a year since it was launched at COP 27, African Green Bank Initiative, has kickstarted the creation of four green banks in Africa and helped the capitalization of Rwanda’s green investment facility as part of its mission to support Africa overcome its climate finance barriers. Setting up green investment facilities in financial institutions in Benin, Ivory Coast, Morocco and Egypt, the initiative seeks to empower local banks with the technical capacity needed to attract climate finance from international and domestic investors. Despite being one of the most climate-vulnerable regions in the world, Africa receives just 3% of global climate finance.
The fact that African governments and financial institutions have put green banks at the top of the agenda shows that Africa is taking its climate finance needs into its own hands. By 2030, the estimated funding needed for African countries to meet their Paris Agreement Nationally Determined Contributions (NDCs) is approximately $2.8 trillion. We cannot wait any longer to solve the lack of climate finance in Africa.
Audrey-Cynthia Yamadjako, Coordinator at the African Green Bank Initiative – Ivory Coast
Developed countries promised at COP 2009 100 billion USD per year to help developing nations fight climate change but this finance is still forthcoming.Green investment facilities overcome traditional barriers to investment, making potential climate projects more attractive and less risky for investors and climate funds.
At each COP we always analyze the same situation and make the same announcements. In Copenhagen it was announced that there would be 100 billion dollars a year for developing countries and we didn’t see that coming. So I think that today we’re at a crossroads and we’re going to have to take concrete action.
Denis Sassou Nguesso, President of the Republic – Congo
By 2030, the African Green Bank Initiative aims to support the creation of an ecosystem of green investment facilities worth 1.5 billion US dollars across the continent. The goal is to enable each green bank to raise funds that can be invested in transformative climate projects and placing Africa in a better position to fight climate change.
