In the quest to implementing the Paris Agreement and achieving the Sustainable Development Goals (SDGs), three organisations convened a round table discussion focused on catalysing green investments.
The organisations included the African Development Bank (AfDB) in conjunction with UNFCCC and West African Development Bank (BOAD), which discussed issues under the theme ECOWAS Green Investment Round Table in Abidjan, Cote d’Ivoire.
The meeting was aimed at promoting private sector finance and investment opportunities in the energy sector in the West Africa region.
In her opening remarks the Ivorian minister for safety, environment and sustainable development, Anne Désiree Ouloto, noted that the meeting was timely in addressing challenges related to sustainable development.
Ouloto observed that financing climate change through investments that target reduction of greenhouse gases and over exploitation of natural resources, helps vulnerable nations with mechanisms and instruments that are relevant, effective and accessible.
The round table therefore presents a good opportunity to share ideas and experiences in green investment finance in West Africa and also stimulate other financial institutions and banks to engage in the transition towards a green economy for our nations, she added.
Also addressing the participants, AfDB vice-president Amadou Hott stressed the need for new models of financing to achieve climate-compatible development.
“The challenge of achieving climate-compatible development requires $1.5 trillion per annum. $700 billion is already flowing annually, leaving a climate investment gap of $800 billion p.a. Financing these investments requires new models where public finance is a vehicle to ‘crowd-in’ private sector finance,” Hott said.
This involves reducing the risk of green investments, increasing their investment grade and attracting institutional investors.
“AfDB is working on different approaches such as the Co-gurantee platform for renewable energy projects that we can work jointly with BOAD and GuarantCo to support renewable energy projects that require private finance,”Amadou added.
AfDB’s director for transformative energy partnerships Astrid Manroth presented the AfDB Co-guarantee facility.
Other presentations included BOAD’s Green Bonds Initiative and Renewable and efficient Energy Fund as a component of global climate change funding mechanism. Read more...
All these are de-risking instruments aimed at fostering green investment in Africa.
Featured image source: 123rf