Addis Ababa March 23/2021 (ENA) The Government of Canada and the African Development Bank have signed an agreement formalizing the Canada –African Development Bank Climate Fund (CACF), a transformative special fund aimed at providing concessional loans to climate change-related projects with a strong gender-responsive component.
In a press release it issued today, the Bank stated that the fund will be capitalized through a combination of a CAD 122.9 million repayable contribution, aimed at providing concessional loans for both sovereign and non-sovereign operations plus a CAD 10 million grant contribution for complementary technical assistance.
The African Development Bank will administer the fund.
According to the statement, CACF resources will be deployed in innovative low-carbon technologies, renewable energy, climate-smart agriculture, sustainable forestry, water management, and climate-resilience projects.
The fund will finance climate change related projects in the African Development Bank’s regional member countries, including those that demonstrate a strong gender equality focus. The empowerment of women and girls will be an objective across all concessional financing of the CACF, aiming at direct, measurable gender equality outcomes.
“In building back Africa, climate resilience is very important… This is why I’m delighted and thrilled with the Canada-African Development Bank Climate Fund that we are launching today,” African Development Bank President Akinwumi A. Adesina said after the announcement.
He thanked Canada for its “tremendous” support to the Bank in terms of general capital increases, temporary callable capital, and the support that Canada has given to Africa through the Bank.
The African Development Bank’s financing for climate has increased fourfold from 9% of its total portfolio in 2016, to 36% by 2019, and is on track to achieve its target of 40% of total portfolio by the end of 2021. The Bank has committed to providing USD 25 billion in climate financing by 2025.
The Canada-Africa Clean Growth Symposium, co-hosted by Canada, Ethiopia and Senegal, brings together economic and business leaders from the public and private sectors from Canada and sub-Saharan Africa to explore innovative ways to grow their economies, while reducing emissions and building resilience to climate change.