African Development Fund Launches Second Call for Climate Action Window Proposals

Kariuki expressed gratitude to the founding donor countries – Netherlands, Germany, Switzerland, and the United Kingdom – for their support.

The African Development Fund (ADF) has announced the second call for proposals through its Climate Action Window (CAW) during the 59th Annual Meetings of the Board of Governors of the African Development Bank Group, currently taking place in Nairobi. This initiative, established during the 16th replenishment of the ADF (ADF-16), aims to support 37 low-income and vulnerable African countries by accelerating and scaling up access to climate finance for combating the impacts of climate change.

In a special session for CAW donors on May 27, Kevin Kariuki, African Development Bank Vice-President for Power, Energy, Climate, and Green Growth, stated that the second call would focus on climate mitigation projects designed to reduce or avoid greenhouse gas emissions, thus supporting the achievement of net-zero emissions.

Kariuki highlighted recent climate-related disasters across Africa, including floods in Kenya and Tanzania, cyclone Freddy's devastation in South Africa, and ongoing droughts in southern Africa, emphasizing the continent's urgent need for climate action. He noted that Africa's climate financing needs currently stand at approximately $277 billion and require innovative financial tools such as guarantee mechanisms and sustainable hybrid bonds. The Climate Action Window aims to mobilize $4 billion during the current ADF-16 cycle.

He also announced that the Board of Governors approved $13.2 million from its net income for the Climate Action Window. Kariuki expressed gratitude to the founding donor countries – Netherlands, Germany, Switzerland, and the United Kingdom – for their support.

The first call for CAW proposals received 359 eligible projects totaling $4 billion, reflecting significant adaptation needs across ADF countries. These projects, encompassing 31 national and 10 multinational initiatives, span various sectors such as agriculture, water security, early warning systems, green finance, and resilient infrastructure.

Anthony Nyong, Director at the African Development Bank Group, noted that these projects represent "the largest pipeline of adaptation projects on the continent." The Bank has committed to allocating at least 40 percent of its annual investments, amounting to $25 billion, to climate finance from 2020 to 2025. In 2023 alone, it committed $5.85 billion to climate finance, guided by its "triple A" strategy – availability, access, and affordability of climate finance.

The ADF opened the CAW with initial financing of $429 million to address the climate financing needs of low-income countries, with plans to expand this to $14 billion. The second call for proposals is open to a broad range of entities, including government bodies, African Development Bank departments, non-governmental organizations, community-based organizations, and inter-governmental organizations, including UN agencies and regional economic communities.