African Development Bank Unveils $56m Climate Fund to Tackle Africa’s Climate Finance Gap

Follow

( 0 Followers )

X

Follow

E-mail : *

Follow Unfollow

The African Development Bank (AfDB) has launched a groundbreaking $56 million Climate Action Window (CAW) Technical Assistance Facility to address Africa’s persistent climate finance challenges.

Announced during COP29 in Baku, Azerbaijan, this initiative is set to revolutionise climate project development and implementation across 37 low-income African nations, targeting adaptation and mitigation efforts crucial to meeting global climate goals.

The Climate Action Window, established under the African Development Fund’s 16th replenishment cycle, will channel 75% of its funding into adaptation projects, 15% into mitigation, and 10% into technical assistance.

By mobilising resources from both public and private sectors, the fund aims to bolster the capacity of vulnerable countries to attract significant climate financing while aligning with the Paris Agreement, Nationally Determined Contributions (NDCs), and National Adaptation Plans (NAPs).

Backed by strong commitments from partners including the United Kingdom, Germany, the Netherlands, and Switzerland, CAW is now accepting project proposals from governments, regional organisations, NGOs, and UN agencies. Grants will range from $260,000 to $1.3 million per project, with applications open until February 5, 2025.

African leaders have welcomed the initiative as a crucial tool for driving climate resilience. Côte d’Ivoire’s Minister of Environment and Sustainable Development, Assahoré Konan Jacques, expressed gratitude to the AfDB and its partners, highlighting the fund’s potential to directly support communities on the frontline of climate change.

Chad’s Minister for Economy and Planning, Fatima Haram Acyl, emphasised that for countries like hers, where floods and droughts have devastating impacts, CAW provides a lifeline for transformative, fast-acting solutions.

Madagascar’s Environment Minister, Max Andonirina Fontaine, praised the fund’s flexibility, pointing to its ability to support ecotourism initiatives that protect forests while creating jobs.

Global partners have also highlighted the transformative potential of the fund. Louise Walker, Head of the Private Sector and Capital Markets Department at the UK Foreign Commonwealth and Development Office, called for additional contributions to CAW, describing it as an unprecedented pipeline for climate finance in Africa.

Dr. Kevin Kariuki, AfDB Vice President for Power, Energy, and Climate Change, emphasised that the facility positions African nations to meet their global climate commitments while accelerating sustainable development.

Euan Low, Regional Lead for Southern and Eastern Africa at the Green Climate Fund (GCF), praised the fund’s collaborative model, which has already mobilised $1.6 billion through co-financing.

CAW has already identified 80 adaptation projects worth $800 million, with 41 projects funded and active partnerships established with leading climate finance institutions, including the GCF, Global Environment Facility, and Adaptation Fund.