African Development Bank Targets $5 Billion Climate Financingby
Bank plans to triple green-project financing in five years
Sees climate change as `urgent threat, unique opportunity'
The African Development Bank will triple its climate financing to about $5 billion per year by 2020.
The Abidjan, Ivory Coast-based development bank said it will dedicate 40 percent of annual investment to green projects such as renewable energy and climate adaptation over the next five years.
“Climate change is both an urgent threat and a unique opportunity,” said Akinwumi Adesina, president of the AfDB. “The bank is significantly stepping up its support for African countries, not only to meet that threat but also to seize the opportunity to drive low-carbon, climate-resilient growth.”
Development banks from London to Manila to Luxembourg are boosting climate-related project financing before a United Nations conference on reducing greenhouse gas emissions in Paris in December. Half of the $5 billion will be used to develop renewable energy generation with a focus on solar, hydro, wind and geothermal power, the bank said in a statement. It also plans to develop energy efficiency projects and sustainable transportation systems.
The remainder will go to climate adaptation activities such as climate-resilient crops, sustainable infrastructure and improving irrigation systems and water access, it said. The bank will also build climate resilience into all its infrastructure projects.
The money will be raised partly through issuing more green bonds. The bank will also pursue co-financing deals with both public and private sectors and concessional financing from the Green Climate Fund.