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The African Development Bank has partnered with the Climate Investment Funds to release a scoping report highlighting the impact of combining green banks and national climate funds to accelerate green financing.

The report explores six countries, that being Ghana, Zambia, Uganda, Tunisia, Mozambique and Benin, to gain knowledge about how expanding the green bank model in Africa could build country-based green finance capacity.

Combining the green bank model with national climate change funds has the potential to scale private investment in support of climate and sustainable development goals, the report has found.

Combining the two financing mechanisms would also help direct funds to sectors where it is needed the most to mitigate climate change.

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The two sectors identified as key priorities to boost climate mitigation include renewable energy and climate-smart agriculture followed by green cities infrastructure.

Combining the finance mechanism would also help promote knowledge sharing on climate-friendly financing and projects between national regulators, banks, project developers, academia and stakeholders from various sectors.

Dorsouma Al Hamdou, the acting director for climate change and green growth at the African Development Bank, said: “Innovative green finance could play a key role in Africa’s economic recovery from the COVID-19 pandemic, to build resilience and grow jobs,

“As we look towards what will be needed to progress from emergency aid relief to medium- to longer-term measures to build resiliency and re-grow developing economies, the role of catalytic, innovative finance capacity to support sustainable infrastructure and social investment through mobilising public and private resources will be essential.

“Green banks and national climate change funds are well positioned to fill this role and support economic recovery and job growth through the rebuilding of green development sectors such as agriculture, renewable energy, and green cities.”

Andrea Colnes of the Coalition for Green Capital, the NGO recruited to carry out the study, added: “The green bank model had demonstrated its effectiveness in other regions of the globe and had great potential in Africa.

To date, members of the Green Bank Network have leveraged more than $24 billion in public capital to finance more than $70 billion in clean energy projects. “This investment has supported jobs, economic development and avoided more than 25 million tonnes of CO2 emissions annually,” concluded Colnes.

Download the full report here.