Kenya to benefit from AfDB climate financing

Micro wind turbines in Remba Island in Homabay County. Products of PowerGen Renewable energy, an off grid Nairobi based company. 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. Photo/FILE  NATION MEDIA GROUP

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.