Nov. 18, 2024

In a major step to address Africa’s climate finance gap, the African Development Bank Group has launched a new funding call that will transform the development of climate projects across 37 low-income African countries.

With an initial allocation of $56 million, the Climate Action Window (CAW) Technical Assistance Facility, launched at COP29 in Baku, Azerbaijan, will support the preparation, financing, and implementation of adaptation and mitigation projects aligned with the Paris Agreement, Nationally Determined Contributions (NDCs), and National Adaptation Plans (NAPs).

The African Development Fund, the Bank Group’s concessional window, established the Climate Action Window under its 16th replenishment cycle to mobilise public and private sector resources for adaptation (75%), mitigation (15%), and technical assistance (10%), projects and improve low-income African countries’ capacity to attract climate finance.

Backed by significant funding commitments from partners including the United Kingdom, Netherlands, Germany, and Switzerland, the new Facility will be accepting proposals from governments, regional organizations, NGOs, and UN agencies in ADF countries via its online portal (http://apo-opa.co/3ObywpE) through February 5, 2025. Awards will range from $260,000 to $1.3 million per project.

At the launch, Cote d’Ivoire’s Minister of Environment and Sustainable Development Assahoré Konan Jacques, welcomed the new initiative.

“I would like to thank the African Development Bank and its partners, as these funds will finance the resilience of our people. Specific activities have been identified and targeted, and I call on the African Development Bank to learn from the challenges other funds have faced, ensuring that CAW succeeds where others have struggled.”

Mrs. Fatima Haram Acyl, the Chad Minister for Economy and Planning, stressed that: “For countries like Chad, climate vulnerability is not just a term. Our people face floods, droughts, and immense losses, and we need real, fast-acting solutions. The CAW presents an opportunity to deliver transformative projects that strengthen our communities’ resilience.”

Max Andonirina Fontaine, Madagascar’s Minister of Environment, noted: “The CAW enables African nations to pilot initiatives that truly address our needs. With its flexible approach, we can, for example, fund ecotourism projects in Madagascar that both protect forests and create jobs—support that Africa urgently needs.”

Ms. Louise Walker, Head of the Private Sector and Capital Markets Department at the Foreign Commonwealth and Development Office (FCDO), emphasized the UK’s commitment.

“There is no pipeline like this in Africa. We invite other partners to join and surpass our contribution, setting a new benchmark for climate finance,” she said.

Dr. Kevin Kariuki, Vice President of Power, Energy, and Climate Change at the Bank added: “The CAW provides a veritable channel for countries to meet their global climate commitments.

This facility will ensure that projects in Africa’s most climate-vulnerable regions are well positioned to attract significant funding, creating a win-win scenario where countries can achieve climate targets, while advancing sustainable development.”

“Our partnership with the African Development Bank has proven the efficacy of co-financing,” said Euan Low, Regional Lead for Southern and Eastern Africa at GCF.

“With $800 million in co-financing, we are leveraging $1.6 billion to ensure that Africa’s most vulnerable populations have access to critical adaptation resources.”

Driving Climate Adaptation with a Strong Project Pipeline

Launch of the facility will enable the African Development Bank to increase the reach of the CAW’s efforts. CAW represents the largest pipeline of adaptation projects in Africa, with 80 projects valued at $800 million already identified, and 41 projects funded.

In its short operational span, CAW has mobilised additional co-financing and achieving\ partnerships with key climate funds, such as the Green Climate Fund (GCF), Global Environment Facility (GEF), and Adaptation Fund.