AfDB, Climate Investment Funds, Coalition for Green Capital to develop Green financing instruments for Africa

The African Development Bank, in partnership with the Climate Investment Funds (CIF), has commissioned the Coalition for Green Capital (CGC) to prepare a study on the creation of national climate change funds and green banks in Africa.

CGC will identify and work with six African countries to conduct feasibility studies for the project, which was initiated at the Green Bank Design Summit held in Paris on March 2019. The Summit tasked 23 developing countries to craft a new model to mobilize and accelerate investment in clean energy.

When paired with effective grant programs through National Climate Change Funds and strong enabling environments and policies, locally-based Green Banks are powerful tools to address market needs, understand local risk and drive private investment.

Green Banks and National Climate Change Funds can play an important role in mobilizing finance to support low-carbon, climate-resilient development, using methods such as blended finance to drive increased private investment.

Countries can mobilize funds from the diaspora, national financial institutions, private investors, asset managers, sovereign wealth funds, and more. These instruments and funds can support the implementation of Nationally Determined Contributions (NDCs), CIF Investment Plans, CIF Strategic Plans for Climate Resilience and NDCs, and progress towards Sustainable Development Goals (SDGs).