AfDB Launches $56M Climate Action Facility to Bridge Africa's Climate Finance Gap

GCF’s Euan Low praised the partnership's ability to reach vulnerable populations, describing it as a critical step in ensuring equitable access to adaptation resources.

At COP29 in Baku, Azerbaijan, the African Development Bank Group (AfDB) unveiled the Climate Action Window (CAW) Technical Assistance Facility, an initiative designed to address Africa's significant climate finance deficit. With an initial funding pool of $56 million, the program will catalyze the development of climate adaptation and mitigation projects across 37 low-income African nations, aligning efforts with the Paris Agreement, Nationally Determined Contributions (NDCs), and National Adaptation Plans (NAPs).

Established under the 16th replenishment cycle of the African Development Fund (ADF), CAW aims to mobilize public and private investments for:

Adaptation projects (75% allocation) to protect communities from climate impacts.

Mitigation efforts (15% allocation) targeting greenhouse gas reduction.

Technical assistance (10% allocation) to improve capacity for climate project development.

The facility has garnered backing from key international partners, including the UK, Netherlands, Germany, and Switzerland, and will accept proposals through February 5, 2025. Grants will range from $260,000 to $1.3 million per project.

Voices from the Launch

At the launch event, regional leaders emphasized the transformative potential of CAW:

Assahoré Konan Jacques, Côte d’Ivoire’s Minister of Environment and Sustainable Development, called on AfDB to learn from past challenges, ensuring the fund’s long-term success.

Fatima Haram Acyl, Chad’s Minister of Economy and Planning, highlighted the urgent need for solutions to climate vulnerabilities that affect millions across the continent.

Max Andonirina Fontaine, Madagascar’s Minister of Environment, pointed to CAW’s flexibility as a way to support innovative initiatives, such as ecotourism projects that balance forest conservation with job creation.

Partnering for Impact

The UK’s Louise Walker, Head of Private Sector and Capital Markets at the FCDO, described CAW as a game-changer in African climate finance and invited more donors to expand the funding base.

Dr. Kevin Kariuki, AfDB Vice President for Power, Energy, and Climate Change, reinforced the facility’s role in helping vulnerable regions meet their global climate commitments while advancing sustainable development.

Expanding Climate Adaptation Efforts

CAW is already building an extensive project pipeline, with 80 projects worth $800 million identified and 41 projects funded to date. The initiative has fostered partnerships with major global climate financiers, such as the Green Climate Fund (GCF), Global Environment Facility (GEF), and Adaptation Fund, leveraging an additional $1.6 billion in co-financing.

GCF’s Euan Low praised the partnership's ability to reach vulnerable populations, describing it as a critical step in ensuring equitable access to adaptation resources.

Africa’s Role in the Global Climate Movement

CAW’s launch highlights Africa’s growing leadership in climate adaptation and mitigation. Projects funded under the facility will tackle issues ranging from sustainable agriculture to renewable energy, water resource management, and urban resilience.

The success of CAW could set a precedent for other global regions, demonstrating the potential of targeted, collaborative approaches to address climate challenges in developing economies.