CGC will identify and work with six African countries to conduct feasibility studies for the project, which was initiated at the Green Bank Design Summit held in Paris in March 2019. The Summit tasked 23 developing countries to craft a new model to mobilise and accelerate investment in clean energy.

Andrea Colnes, Director of Global Green Bank Development at the CGC noted: “For countries to better access climate finance and fully engage the private sector, the climate finance system must reorient toward national financial capacity that is able to channel capital to projects and markets where it is needed most.”

When paired with effective grant programs through National Climate Change Funds and strong enabling environments and policies, locally-based Green Banks are powerful tools to address market needs, understand local risk and drive private investment.

Dr. Anthony Nyong, the Bank’s Director for Climate Change and Green Growth welcomed the collaboration. “Green financing vehicles are increasingly recognized as a powerful instrument to mobilize private sector capital for low carbon and climate resilient development. Their ability to access even limited amounts of local currency finance presents significant opportunities to manage risk, attract concessional finance from climate funds and crowd in private sector finance,” Nyong said.

“We are excited to work with the team from CGC and look forward to presenting progress reports at the Green Bank Summit in 2020 and COP26,” he added.

Green Banks and National Climate Change Funds can play an important role in mobilizing finance to support low-carbon, climate-resilient development, using methods such as blended finance to drive increased private investment.

Countries can mobilize funds from diaspora, national financial institutions, private investors, asset managers, sovereign wealth funds, and more. These instruments and funds can support the implementation of Nationally Determined Contributions (NDCs), CIF Investment Plans, CIF Strategic Plans for Climate Resilience and NDCs, and progress towards Sustainable Development Goals (SDGs).