The value of the African Development Bank’s (AfDB’s) portfolio of so-called environment- smart projects, which are backed by the Global Environment Facility (GEF), has increased to $200-million, covering a total of 28 projects in 30 countries, the bank’s latest annual report shows.
The report highlights the diversity of the portfolio, which focuses on climate change mitigation projects, land degradation, bio- diversity and international waters.
The GEF, through the AfDB, has implemented project funding since 2008. The $200-million AfDB-GEF portfolio has leveraged more than $1.27-billion in cofinancing. The AfDB has also mobilised a minimum of $5 for each dollar of GEF funding.
Investments have been made in all GEF focal areas, in particular in developing approaches in private-sector financing.
As a result of a diversified approach to combating climate change and responding to environment challenges on the continent, the bank has mobilised funding from three GEF-managed trust funds: the GEF Trust Fund, the Least Developed Countries Fund (LDCF) and the Special Climate Change Fund.
With 50% of the resources funded by the LDCF, the AfDB is one of the lead agencies for this fund and also demonstrates its capacity to mobilise external resources for climate change adaptation for the continent.
AfDB manager of environment and climate change Kurt Lonsway notes that, on a global scale, Africa is not flagged as a major emitter of greenhouse gases (GHGs).
“However, the continent is becoming the most exposed region in the world to the impacts of climate change. The growing partnership between the AfDB and the GEF is poised to address the climate change challenges on the continent,” he says.
The report also highlights two key projects that began last year: the African Climate Technology Finance Centre and Network and the African Renewable Energy Fund (AREF).
The African Climate Technology Finance Centre and Network is funded with $14.4-million through the GEF. It is designed to support the development and transfer of climate technologies in African countries as a way to help reduce GHG emissions and vulnerability to climate change.
The project provides a platform for dissemi- nating knowledge and brings together key stakeholders to develop innovative climate change financing mechanisms.
The $130-million AREF was launched in March last year with the Sustainable Energy Fund and the GEF as lead sponsors, each contributing to equity investment.