AfDB launches $56mn funding facility at COP29 to unlock African climate finance
The African Development Bank has launched a $56 million funding facility at COP29 to drive climate adaptation and mitigation projects across Africa’s low-income nations.
(Baku, Azerbaijan) — In a major step to address Africa’s climate finance gap, the African Development Bank Group (AfDB) has launched a new funding call that will transform the development of climate projects across 37 low-income African countries.
This was launched today at COP29 in Baku, Azerbaijan. The Climate Action Window (CAW) Technical Assistance Facility with an initial allocation of $56 million in funding 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).
According to the statement made available to Gas Outlook, the bank established the new funding 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 organisations, NGOs, and UN agencies in ADF countries via its online portal through February 5, 2025. Awards will range from $260,000 to $1.3 million per project,” the statement says.
Dr. Kevin Kariuki, Vice President of Power, Energy, and Climate Change at the bank, said the CAW provides a veritable channel for countries to meet their global climate commitments. He said the 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,” he added.
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.”
Fatima Haram Acyl, the Chad Minister for Economy and Planning, stressed that for countries like Chad, climate vulnerability is not just a term. She said her 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.”
The 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.