The African Development Bank (AfDB) is planning to expand the Climate Development Fund for Africa into a trust in a bid to open up international investment avenues to advance the continent’s readiness for climate-resilient, low-carbon development and green growth.
The announcement was made on Thursday during a high level discussion panel at the climate talks here in Paris which are coming to an end.
Climate financing to the African continent still remains below estimated needs despite progress to scale up climate finance globally.
AfDB Manager for Environment and Climate Change Kurt Lonsway said AfDB approved 22 proposals under its Africa Climate Change Fund last year.
Lonsway said the Bank was committed to helping African countries transit to green economic pathways amid the negative effects of climate gripping most countries.
“In 2014, with the help of the German government, we established the Climate Development Fund aimed at helping countries with adaptation and facilitating a green growth path.
“Due to the observed high demand for funds, the bank is looking at expanding the portfolio into a trust to open up investments opportunities from international partners,” said Lonsway.
Lonsway said this would subject countries to more rigorous processes that require readiness to access Fund (GCF).
Rwanda is among the few countries in Africa that are accredited to Green Climate Fund (GCF).
Rwandan Environmental Management director Authority Rose Mukankomeje however encouraged other African countries to get accredited but highlighted the need for Africa to put in place proper measures to hold its representatives on the GCF board accountable.
Pan African Climate Justice Alliance (PACJA) representative Sam Ogallah urged the GCF board members representing developing countries to put Africa’s interest first and advised African countries to apply for climate readiness funds.
“Why are countries not applying for the climate readiness funds? This money is there waiting to be utilized for capacity building and it is up to country focal points to wake up and do the right thing”, he said.