Partnership will prepare a study to establish green banks in Africa

first_imgAndrea Colnes, director of global greenbank development at the CGC noted: “For countries to better access climatefinance and fully engage the private sector, the climate finance system mustreorient toward national financial capacity that is able to channel capital toprojects and markets where it is needed most.” Sign up for the ESI Africa newsletter TheAfrican Development Bank (AfDB) in partnership with the Climate InvestmentFunds (CIF) has commissioned the Coalition for Green Capital (CGC) to prepare astudy on the creation of national climate change funds and green banks inAfrica. Featured image: Stock When paired with effective grant programmesthrough National Climate Change Funds and strong enabling environments andpolicies, locally-based Green Banks are powerful tools to address market needs,understand local risk and drive private investment. The Summit tasked 23 developing countries to craft a new model to mobilise and accelerate investment in clean energy. CGC will identify and work with six Africancountries to conduct feasibility studies for the project, which was initiatedat the Green Bank Design Summit held in Paris in March this year. Dr Anthony Nyong, the Bank’s director forclimate change and green growth welcomed the collaboration. Nyong said: “Green financing vehicles are increasingly recognised as a powerful instrument to mobilise private sector capital for low carbon and climate–resilient development. Their ability to access even limited amounts of local currency finance presents significant opportunities to manage risk, attract concessional finance from climate funds and crowd in private sector finance.” “We are excited to work with the team from CGC and look forward to presenting progress reports at the Green Bank Summit in 2020 and COP26,” he added. These instruments and funds can support theimplementation of Nationally Determined Contributions (NDCs), CIF InvestmentPlans, CIF Strategic Plans for Climate Resilience and NDCs, and progresstowards Sustainable Development Goals (SDGs). Low carbon, solar future could increase jobs in the future – SAPVIA center_img BRICS Finance and Policy UNDP China, CCIEE launch report to facilitate low-carbon development RELATED ARTICLESMORE FROM AUTHOR Read more about financing models Generation AFD and Eskom commit to a competitive electricity sector TAGSAFDBClimate changefunding Previous articleSA plunges back into darkness as Eskom assets failNext articleWebinar recording: How to maximise performance and shorten the payback period of your distributed generation solar PV projects in sub-Saharan Africa Babalwa BunganeBabalwa Bungane is the content producer for ESI Africa – Clarion Events Africa. Babalwa has been writing for the publication for over five years. She also contributes to sister publications; Smart Energy International and Power Engineering International. Babalwa is a social media enthusiast. Green banks and national climate change funds can play an important role in mobilising finance to support low-carbon, climate-resilient development, using methods such as blended finance to drive increased private investment. Countries can mobilise funds from the diaspora, national financial institutions, private investors, asset managers, sovereign wealth funds, and more. last_img read more