AfDB launches $56m fund to bridge Africa's climate finance gap

The African Development Bank (AfDB) Group launched a Climate Action Window (CAW) Technical Assistance Facility during COP29 in Baku, Azerbaijan, to accelerate climate project development in 37 low-income African countries.

This initiative is coming a few days after Kevin Kariuki, Vice President of the African Development Bank Group for Power, Energy, Climate and Green Growth, urged for increased climate finance in Africa. He highlighted that the continent receives just 3 to 4% of global climate finance, although it is home to nine of the ten countries most vulnerable to climate change. Kariuki stated that the AfDB aims to increase Africa's access to global climate finance to 10% by 2030.

CAW aims to support climate adaptation and mitigation projects that align with global climate goals. With an initial allocation of $56 million supported by contributions from the UK, Netherlands, Germany, and Switzerland, the facility will support projects with grants ranging from $260,000 to $1.3 million per project. CAW will be mobilized as follows: 75% of resources will be allocated for adaptation projects, 15% for mitigation projects, and 10% for technical support. Governments, regional organizations, NGOs, and UN agencies can now submit proposals through the CAW online portal until February 5, 2025.

With a pipeline of 80 projects totaling $800 million already identified and 41 projects funded, CAW has demonstrated its potential to expand efforts in climate adaptation and mobilize co-financing from global climate funds like the Green Climate Fund (GCF) and the Global Environment Facility (GEF). Many African leaders have embraced this initiative, viewing it as a crucial step in tackling Africa's climate finance shortfall.