GCF approves $170.9 M for African countries
Africa: The board of the Green Climate Fund (GCF) has approved $170.9 M in financing for the African Development Bank’s (AfDB) program.
Image source: ESI Africa
Africa: The board of the Green Climate Fund (GCF) has approved $170.9 M in financing for the African Development Bank’s (AfDB) program.
The financing for the AfDB’s Leveraging Energy Access Finance Framework (LEAF) programme is part of an overall allocation of $501.1 M in GCF resources for new climate projects.
The new climate projects approved will mobilise a total of $2,949 M for climate action in Africa, Asia, and Latin America, with three of the four new projects targeting support to the most vulnerable countries including least developed countries, small islands, developing states and African states.
The AfDB LEAF programme aims to unlock commercial and local-currency financing for decentralised renewable energy (DRE) projects in six programme countries: Ghana, Guinea, Ethiopia, Kenya, Nigeria and Tunisia.
The Green Climate Fund’s financing is part of an overall $900 M programme budget whose objective is to scale up the roll-out of minigrids, solar home systems, and commercial and industrial solar solutions in the programme countries.
Tony Clamp, acting director of GCF’s private sector facility, said: “GCF is delighted to partner with the AfDB to support this timely and critical program for decentralised renewable energy across these six African countries. Green Climate Fund’s commitment will help unlock much-needed commercial capital and local currency financing to help overcome financing barriers exacerbated by COVID-19.”
Under LEAF, Africa’s abundant solar resources will be harnessed to provide renewable energy to six million people and businesses, and will also prevent 28.8 million tonnes in CO2 emissions over the lifetime of the systems.
By deploying credit enhancement instruments and technical assistance, LEAF will strengthen capital markets and crowd-in private sector investors, including local financial institutions.
Source: ESI Africa