On 9 October, Akinwumi Adesina, the president of the African Development Bank, announced that the AfDB would nearly triple its annual climate financing to reach US$5 billion a year by 2020, with a spending increase to 40% of its total new investments.
US$2.5 billion will be dedicated to reducing Africa’s greenhouse gas emissions by tapping into Africa’s huge potential for renewable energy, particularly solar, hydro, wind and geothermal power. By working with clients, the AfDB also hopes to improve energy efficiency and build sustainable transport systems.
The other half of the US$5 billion will go towards helping African economies adapt to climate change, adding to the almost US$7 billion the AfDB has already committed to support climate-resilient and low-carbon development. Key measures include investing in climate-resilient crops, building sustainable infrastructure and improving irrigation and access to water. The Bank will also integrate climate resilience into all of the infrastructure projects it finances, and supports the Africa Renewable Energy Initiative and the Africa Adaptation Initiative, both of which are endorsed by the African Union heads of state and government.
As well as increasing its own climate financing, the AfDB will pursue public and private co-financing opportunities, including issuing more green bonds as a way of funding its climate investments.
“Climate change is both an urgent threat and a unique opportunity,” Adesina said. “The Bank is significantly stepping up its support for African countries, not only to meet that threat but also to seize the opportunity to drive low-carbon, climate-resilient growth.”“The current climate financing architecture is not providing the finance Africa needs,” Adesina said. “Much more needs to be done to increase Africa’s access to climate finance”.
The bank’s announcement reflects the high priority it places on addressing climate change in its Ten Year Strategy 2013-2022.
Edited from various sources by Rebecca Bowden
Read the article online at: https://www.worldcement.com/africa-middle-east/12102015/the-afdb-triples-annual-climate-financing-754/