Green banks soon in 5 African countries

by time news

2023-11-24 09:43:11

To better take charge of the fight against climate change on their respective territories, Benin and four other African countries are working together to set up national green banks.
With the support of the African Development Bank (AfDB), an initiative is underway to create banks specializing in climate finance in five African countries. The aim is to close the climate finance gap resulting from rich countries failing to meet their commitment to provide $100 billion per year to developing countries. According to Audrey-Cynthia Yamadjako, senior climate finance officer at the AfDB and coordinator of the African Green Banks initiative, Egypt, Morocco, Benin, Ivory Coast and Rwanda are involved in the creation of these green banks, with financial support from the ADB. The AfDB has already mobilized $142 million for the Rwandan green bank, with contributions from the Global Climate Partnership Fund, the Danish International Development Agency (DANIDA), the French Development Agency (AFD) and of the British government. The Rwandan green bank also plans to partner with private institutions to co-finance projects, thus adopting a “Blended finance” approach. Ms. Yamadjako emphasizes that this model will be an example for the African region, particularly for governments wishing to establish their own national green bank. Rwanda’s green bank is expected to start financing projects in 2024. This initiative comes at a time when rich countries have failed to meet their commitment to provide $100 billion a year in climate aid to developing countries, as agreed in 2009 under the aegis of the United Nations Convention on Combating Climate Change. The growing needs of African countries for climate financing contrast with the low contribution of global funds, and the participation of the private sector remains limited. Faced with this, the AfDB and African countries are seeking alternative solutions to respond to the challenges of climate change in the region.

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QA November 24, 2023

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