Nigeria and other African countries will benefit from the World Bank and the African Development Bank funding. They are about to commit $47.5bn by 2025 to help African countries tackle the effects of climate change.
Despite contributing four per cent of the global greenhouse-gas emissions, more than 65 per cent of Africa’s population is directly impacted by climate change, according to the United Nations Economic Commission for Africa.
It said considering Africa’s high vulnerability despite contributing the least to climate change, the AfDB had successfully raised its adaptation finance from less than 30 per cent of total climate finance to parity with mitigation in 2018.
Adesina said, “The required level of financing is only feasible with the direct involvement of the entire financial sector. Consequently, the bank launched the African Financial Alliance for Climate Change to link all stock exchanges, pension and sovereign wealth funds, central banks and other financial institutions of Africa to mobilise and incentivise the shift of their portfolios towards low carbon and climate resilient investments.”
He said it was not good enough to simply ask countries to stay away from polluting technologies.
“We have to be proactive in exploring alternatives. We will, therefore, be launching the ‘green baseload’ facility under the Sustainable Energy Fund for Africa, to provide concessional finance and technical assistance to support the penetration and scale-up of renewable energy, to provide affordable and reliable renewable energy baseload,” Adesina added.
According to the statement, several donors, including Canada, Denmark, Germany, Norway, Italy, the United Kingdom and United States Agency for International Development have indicated their interest in the instrument, which will also help to replace coal.
It said the AfDB had played a critical role in building Africa’s clean energy capacities, adding that the bank’s last investment in a coal project was 10 years ago.