By Sandra Chao
In Summary
- Kenya is one of six African countries set to benefit from climate financing support through the African Development Bank
- Kenya and Mali are set to receive funding for projects that are oriented with renewable energy, while in Burkina Faso, DRC and Ghana the funds will be dedicated to sustaining the forest cover
- Those investing in climate resilience in Mozambique can also benefit from the financing
Kenya is one of six African countries set to
benefit from climate financing support through the African Development
Bank (AfDB) in 2014.
The six emerged winners in a four month
competition run by the Multilateral Development Banks’ global Climate
Investment Funds (CIF) in order to dedicate funding to attract the
private sector to invest in renewable energy, forest sustenance and
climate resilience projects.
Kenya and Mali are set to receive funding for
projects that are oriented with renewable energy, while in Burkina Faso,
DRC and Ghana the funds will be dedicated to sustaining the forest
cover.
Those investing in climate resilience in Mozambique can also benefit from the financing.
“We believe that private sector engagement in
climate action is critically important to stimulate markets, increase
investment potential, develop climate-friendly business models, and
ensure a sustainable shift for effective climate solutions,” Mafalda
Duarte, AfDB’s CIF coordinator.
The funding will help reduce the large risks that
prevent the private sector’s entrance into renewable energy, energy
efficiency, forestry, and climate resilience investments.
Private investors are often deterred by the large
capital costs the slower return on investments and the lack of suitable
financing. Many of them also do not understand the value of climate
investments and the various areas in which the investments can be made.
“We now look forward to working with the seven
private sector sponsors in the countries to develop the concepts for
full funding by next year. Going forward, more efforts like the CIF
set-asides are needed to raise awareness about business opportunities
for potential private sector sponsors in developing countries,
particularly for climate adaptation,” said Mr Duarte.
The African Development Bank (AfDB), Asian
Development Bank (ADB), European Bank for Reconstruction and Development
(EBRD), Inter-American Development Bank (IDB), and World Bank set up
the Sh662 billion ($7.6 billion) CIF in 2008.
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