Billions pledged for Africa green agenda

Wednesday, September 6th, 2023 00:20 | By
COP28 President Sultan Al Jaber speaks at day two of the Africa Climate Summit at the Kenyatta International Convention Centre. PHOTO/John Ochieng
COP28 President Sultan Al Jaber speaks at day two of the Africa Climate Summit at the Kenyatta International Convention Centre. PHOTO/John Ochieng

Africa continued to receive more goodies during the second day of Africa climate summit as more finances and initiatives were launched.

Among the finances launched yesterday was a $4.5 billion (Sh656 billion) UAE finance initiative to unlock Africa’s Clean Energy Potential, $3 billion (437 billion) for loss and damage by the US government, $35 million (Sh5.1 billion) to support African climate leadership by USAid, and $25 billion (Sh3.6 trillion) by Africa Development Bank which will go towards climate financing by 2025.

Africa Energy Futures Initiatives was launched by the Rockefeller Foundation in partnership with Africa Climate Foundation and Energy for Growth Hub.

The initiative seeks to build 10 hubs in Africa where world-class energy systems, research and analysis will be happening.

Announced by the COP28 President-Designate Sultan Al Jaber, the $4.5 billion (Sh656 billion) investment initiative will help unlock Africa’s clean energy potential. It brings together public, private, and development capital from Abu Dhabi Fund for Development (ADFD), Etihad Credit Insurance (ECI), Masdar, AMEA Power.

Private capital

ADFD and ECI will kickstart the initiative through funding the initial investment intended to catalyze private sector action. ADFD is supporting with $1 billion (Sh145 billion) of financial assistance to address basic infrastructure needs, offer innovative finance solutions and increase mobilisation of private investments.

The ECI is providing $500 million of credit insurance to de-risk and unlock private capital further demonstrating ECI’s commitment towards global sustainable development.

Masdar, one of the world’s largest clean energy companies and active in 22 countries in Africa, will contribute additional $2 billion of equity as part of the new initiative.

Masdar will mobilise an additional US$8 billion in project finance and through its Infinity Power platform, Masdar will target the delivery of 10GW of clean energy capacity in Africa by 2030.

AMEA Power is targeting 5GW of renewable energy capacity in the continent by 2030, mobilising $5 billion, of which $1 billion will come from equity commitment, and $4 billion from project financeAfrica50 will act as a strategic partner to help identify initial project and connect to local implementing entities.

Speaking during the launch of initiative, Jaber called on Africa leaders to set out clear long term transition and investment plans, along with policy and regulatory frameworks to unlock commercial finance for clean energy projects.

“The new initiative aligns with COP28 Presidency call for global tripling of renewable energy by 2030 and push to make finance more available, accessible and affordable.

This initiative will sit under umbrella of Etihad 7, a development platform championed by the UAE Ministry of Foreign Affairs and launched by the UAE at Abu Dhabi Sustainability Week in 2022. Etihad 7 aims to provide 100 million people across the African continent with clean electricity by 2035,”said Jaber.

The announcement came with a clear call to action for African leaders to improve policy and regulatory frameworks to attract the long-term investments necessary to accelerate deployment of clean and renewable energy.

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