Who: African Development Bank
What: Decided to triple Annual Climate Financing to nearly $5 billion by 2020
When: 9 October 2015
The President of the African Development Bank (AfDB), Akinwumi Adesina, on 9 October 2015 announced that the AfDB would nearly triple its annual climate financing to reach 5 billion dollar a year by 2020.
With this, the AfDB’s climate spending will increase to 40% of its total new investments by 2020.
How this fund will help African countries to step up and seize the opportunity to drive low-carbon, climate-resilient growth?
• Half of the 5 billion dollar will be dedicated to reducing Africa’s greenhouse gas emissions by unlocking Africa’s enormous potential for renewable energy, especially solar, hydro, wind and geothermal power.
• The AfDB will also work with its clients to improve energy efficiency and build sustainable transport systems.
• The other half of the 5 billion dollar will help African economies adapt to climate change through measures such as investing in climate-resilient crops, building sustainable infrastructure and improving irrigation and access to water.
• To this end, the Bank will also be integrating climate resilience into all of the infrastructure projects it finances.
AfDB actions to support efforts to tackle climate change
Soon after Akinwumi Adesina became President of AfDB in September 2015, the Bank unveiled the New Deal on Energy for Africa. The landmark initiative aims to solve Africa’s huge energy deficit by 2025, and to spur economic growth that will enhance Africa’s capacity to adapt to climate change.
The Bank’s announcement reflects the high priority it places on addressing climate change in its Ten Year Strategy 2013-2022, as well as massive new support for the energy sector.
In the past four years, the African Development Bank has committed almost 7 billion dollar to support climate-resilient and low-carbon development in Africa. Its energy investments in 2014 will deliver power that is 90% generated from renewable sources.
AfDB also supports the Africa Renewable Energy Initiative and the Africa Adaptation Initiative, both endorsed by the African Union heads of state and government.
African Development Bank (AfDB)
The African Development Bank (AfDB) based in Abidjan, Côte d’Ivoire, aims to spur sustainable economic development and social progress in its regional member countries, thus helping to reduce poverty.
The AfDB mobilises and allocates resources for investment, and provides policy advice and technical assistance. Established in 1964, it is owned by 80 members – 54 African countries and 26 non-African countries.