Coalition for Green Capital to mobilize finance for low carbon, climate resilient development

The African Development Bank has commissioned the Coalition for Green Capital to prepare a study on the making of national climate change funds and green banks in Africa.

The African Development Bank has joined hand with the Climate Investment Funds to make the commissioning of the Coalition for Green Capital (CGC). Climate Investment Funds (CIF) is set to identify and work with six African countries to conduct feasibility studies for the project, which was initiated at the Green Bank Design Summit held in Paris in March 2019. The Summit tasked 23 developing countries to craft a new model to mobilise and accelerate investment in clean energy.

"For countries to better access climate finance and fully engage the private sector, the climate finance system must reorient toward national financial capacity that is able to channel capital to projects and markets where it is needed most," the Director of Global Green Bank Development at the CGC, Andrea Colnes said.

"Green financing vehicles are increasingly recognized as a powerful instrument to mobilize 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," the African Development Bank's (AfDB) Director for Climate Change and Green Growth, Director for Climate Change and Green Growth said while welcoming the collaboration.

The National Climate Change Funds and Green Banks are expected to play significant roles in mobilizing influx of funds low-carbon including the development in climate resilient by utilizing the methods like blended finance to drive increased private investment. "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 further said on the collaboration.