{"id":77669,"date":"2023-05-29T01:00:18","date_gmt":"2023-05-29T01:00:18","guid":{"rendered":"https:\/\/enterpriseam.com\/climate\/2023\/05\/29\/afdb-falls-short-on-climate-finance-targets-but-pledges-to-hit-the-gas-pedal-on-its-climate-funding-initiatives\/"},"modified":"2023-05-29T01:00:18","modified_gmt":"2023-05-29T01:00:18","slug":"afdb-falls-short-on-climate-finance-targets-but-pledges-to-hit-the-gas-pedal-on-its-climate-funding-initiatives","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/climate\/2023\/05\/29\/afdb-falls-short-on-climate-finance-targets-but-pledges-to-hit-the-gas-pedal-on-its-climate-funding-initiatives\/","title":{"rendered":"AfDB falls short on climate finance targets, but pledges to hit the gas pedal on its climate funding initiatives"},"content":{"rendered":"<p><a class=\"content-anchor\" id=\"tldr-story-02\"><\/a> <strong>AfDB annual meeting concludes:<\/strong> The African Development Bank\u2019s (AfDB) <a href=\"https:\/\/enterprise.news\/climate\/en\/news\/story\/649842af-b16e-4fff-baad-ecfd2246ab86\">five-day<\/a> annual <a href=\"https:\/\/www.afdb.org\/en\/news-and-events\/events\/annual-meetings-boards-governors-african-development-bank-group-22-26-may-2023-60050#:~:text=The%2058th%20Annual%20Meetings%20of,22%20to%2026%20May%202023.\">meeting of the board of governors<\/a> concluded in Sharm El Sheikh on Friday, with the release of the <a href=\"https:\/\/ent.news\/2023\/5\/1930.pdf\">Annual Development Effectiveness Review (pdf)<\/a> and the <a href=\"https:\/\/ent.news\/2023\/5\/1931.pdf\">African Economic Outlook report (pdf)<\/a>. Egypt\u2019s International Cooperation Minister Rania Al Mashat and Irrigation and Water Resources Minister Hani Sewilam held a marathon of meetings on the last two days, and saw the UK\u2019s <a href=\"https:\/\/www.afdb.org\/en\/news-and-events\/press-releases\/united-kingdom-announces-first-water-infrastructure-resilience-projects-egypt-and-senegal-under-its-room2run-guarantee-program-61503\">announcement<\/a> of a EUR 80 mn guarantee for Egypt\u2019s El Gabal El Asfar water treatment plant. Egypt\u2019s Central Bank Governor Hassan Abdalla handed over the chairmanship of the bank\u2019s Board of Governors at the closing ceremony, according to a <a href=\"https:\/\/www.facebook.com\/EgyptianCabinet\/posts\/pfbid02hK8NA21oxPmd73UXQAVZDaDztscj9qKe5xT1idfYL9nnPQ757Grh9GMoDUinxsGVl\">statement<\/a> released on Friday.<\/p>\n<p><strong>AfDB financed 113 MW of Africa\u2019s renewable projects, falling short of its 560 MW target,<\/strong> the bank\u2019s 2023 Annual Development Effectiveness Review revealed. While the bank achieved only 20% of its renewable funding target compared to a 2015 baseline, it managed to exceed its emission reduction target which reached some 2.6 mn tons CO2 in 2022. 75% of Africa\u2019s electricity is still generated by fossil fuels, despite efforts from Kenya and Morocco who generate more than 10% of their energy through renewables \u2014 a higher percentage than China, India, and the US. The report also noted that the continent will play a critical role in global EV expansion as it holds over 40% of the world\u2019s cobalt, manganese, and platinum reserves.<\/p>\n<p><strong>But it's putting the pedal to the metal on its climate financing initiatives: <\/strong>The annual review outlined some of the bank\u2019s crucial climate initiatives, including its partnership in the <a href=\"https:\/\/www.gov.uk\/government\/news\/second-energy-transition-council-ministerial-rapid-response-facility-launch\">COP26 Energy Transition Rapid Response Facility<\/a>, the <a href=\"https:\/\/www.ahmpafrica.org\/\">Africa Hydropower Modernisation Programme<\/a> and flagship <a href=\"https:\/\/www.afdb.org\/en\/documents\/desert-power-en#:~:text=The%20objective%20of%20the%20umbrella,the%20region's%2520abundant%2520solar%2520potential.\">Desert to Power G5 Sahel Financing Facility<\/a> \u2014 both supported by the AfDB\u2019s <a href=\"https:\/\/www.afdb.org\/en\/topics-and-sectors\/initiatives-partnerships\/sustainable-energy-fund-for-africa\">Sustainable Energy Fund for Africa<\/a>, and finally its <a href=\"https:\/\/ent.news\/2023\/5\/1952.pdf\">2016-2025 Strategy for the New Deal on Energy for Africa (pdf)<\/a>.<\/p>\n<p><strong>Some USD 27.2 bn in annual private climate financing could close the gap for climate <\/strong><strong>needs in North Africa by 2030<\/strong>, the African Economic Outlook 2023 report calculated. This is based on the scenario that the residual climate finance needs will fully come from the private sector.<\/p>\n<p><strong>The numbers:<\/strong> Countries have identified the annual private sector investment required taking into account what the public sector can contribute. Algeria needs USD 2.4 bn a year, Egypt will require USD 19.8 bn a year, Morocco needs USD 93.9 bn a year, and Tunisia USD 24.4 bn per year, the report finds.<\/p>\n<p><strong>Blended finance is crucial, but North Africa falls short: <\/strong>Blended finance \u2014 finance that combines official development assistance with private funding to leverage funds and reduce risks \u2014 is crucial in unlocking the needed climate financing, the report suggests. North Africa has failed to tap into the de-risking tool, having one of the smallest proportions of climate blended finance compared to East and South Asia, Latin America, and Sub Saharan Africa. The rate in North Africa has not changed in the last 5 years.<\/p>\n<p><strong>Meetings dominated the final day: <\/strong>On Friday, Egypt\u2019s Al Mashat met with the UK\u2019s Minister of State for Development and Africa Andrew Mitchell to discuss progress on the <a href=\"https:\/\/enterprise.news\/climate\/en\/news\/story\/002ee2cb-c73a-4206-a217-7832c9149f49\">Climate Finance Accelerator<\/a>, and with Norway\u2019s Development Minister Bjorg Sandkjaer to discuss pathways to increasing bilateral cooperation in the renewable energy sector, according to a <a href=\"https:\/\/www.facebook.com\/EgyptianCabinet\/posts\/pfbid0mkeSH8aYUpPpV8Qu9DFLp7vwQDauocyuxjdsgc4vT7r5TcZ3UnrPUyrS8SwyPuKFl\">statement<\/a>. A meeting with German Parliamentary State Secretary in the Ministry for Economic Cooperation and Development Barbel Koffler was also held to review the <a href=\"https:\/\/www.bmz.de\/en\/news\/press-releases\/us-germany-and-egypt-agree-on-ambitious-climate-cooperation-127946\">debt swap program<\/a> to support Egypt's Nexus of Water, Food and Energy program of which two tranches worth EUR 160 have been implemented. Al Mashat also <a href=\"https:\/\/www.facebook.com\/EgyptianCabinet\/posts\/pfbid0S2n9M9qzu6jxM6hPQNasbmz5jXjM2SgnFKMEPND45QXXAH6hVFQUxq64aSqnRDmEl\">touched on the debt swap program<\/a> with Assistant Secretary of the US Treasury for international markets Alexia Latortue amidst a discussion on stimulating private sector participation.<\/p>\n<p><strong>Water issues made an appearance: <\/strong>Egypt\u2019s Sewilam met with the Vice President of the African Bank Beth Dunford on Friday to discuss Egypt\u2019s presidency of the African Ministers' Council on Water and its efforts to enhance climate adaptation and the use of renewable energy in water pumping and treatment, according to a <a href=\"https:\/\/www.facebook.com\/EgyptianCabinet\/posts\/pfbid036VcXs4ZF7P4diZ8Uom4KZHhjpzSMtW1VJXJVvzFuKEaSVzZUdVCHMLHsyiEnkBdfl\">statement<\/a>. The irrigation minister also sat with the Assistant Secretary-General and Director of the Regional Bureau for Arab States for the UN Development Programme to discuss the <a href=\"https:\/\/enterprise.news\/climate\/en\/news\/story\/cbabe4cb-2b41-421f-8d3c-96628b398197\">Green Climate Fund<\/a>, and the joint project, \u201cPromoting Adaptation to Climate Changes in the Northern Coast and the Nile Delta,\u201d another <a href=\"https:\/\/www.facebook.com\/EgyptianCabinet\/posts\/pfbid02hD7z6sWCtoXeP3X8vJPp8qtkosJJX2bKc8VtkGNBKGjGbK2cTRJM7kdkC88DLGiil\">statement<\/a> added.<\/p>\n<p><strong>The UK provided a guarantee of EUR 80 mn to the AfDB to support phase 3 of Egypt\u2019s <\/strong><strong><a href=\"https:\/\/www.presidency.eg\/en\/%D8%A7%D9%84%D9%85%D8%B4%D8%A7%D8%B1%D9%8A%D8%B9-%D8%A7%D9%84%D9%82%D9%88%D9%85%D9%8A%D8%A9\/%D9%85%D8%AD%D8%B7%D8%A9-%D9%85%D8%B9%D8%A7%D9%84%D8%AC%D8%A9-%D9%85%D9%8A%D8%A7%D9%87-%D8%A7%D9%84%D8%B5%D8%B1%D9%81-%D8%A7%D9%84%D8%B5%D8%AD%D9%8A-%D8%A8%D9%85%D9%86%D8%B7%D9%82%D8%A9-%D8%A7%D9%84%D8%AC%D8%A8%D9%84-%D8%A7%D9%84%D8%A3%D8%B5%D9%81%D8%B1\/\">El<\/a><\/strong><strong><a href=\"https:\/\/www.presidency.eg\/en\/%D8%A7%D9%84%D9%85%D8%B4%D8%A7%D8%B1%D9%8A%D8%B9-%D8%A7%D9%84%D9%82%D9%88%D9%85%D9%8A%D8%A9\/%D9%85%D8%AD%D8%B7%D8%A9-%D9%85%D8%B9%D8%A7%D9%84%D8%AC%D8%A9-%D9%85%D9%8A%D8%A7%D9%87-%D8%A7%D9%84%D8%B5%D8%B1%D9%81-%D8%A7%D9%84%D8%B5%D8%AD%D9%8A-%D8%A8%D9%85%D9%86%D8%B7%D9%82%D8%A9-%D8%A7%D9%84%D8%AC%D8%A8%D9%84-%D8%A7%D9%84%D8%A3%D8%B5%D9%81%D8%B1\/\">Gabal El Asfar<\/a><\/strong><strong> water treatment plant under its Room2Run initiative<\/strong>, the <a href=\"https:\/\/www.afdb.org\/en\/news-and-events\/press-releases\/united-kingdom-announces-first-water-infrastructure-resilience-projects-egypt-and-senegal-under-its-room2run-guarantee-program-61503\">bank\u2019s website<\/a> reported. The Room2Run guarantee was announced in 2021 during COP26 to enable the AfDB to give out USD 2 bn of climate finance in Africa by 2027, with a 50-50 split between adaptation and mitigation, the website notes. The UK also allocated EUR 37 mn to a water sanitation project in Senegal.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>AfDB annual meeting concludes: The African Development Bank\u2019s (AfDB) five-day annual meeting of the board of governors concluded in Sharm El Sheikh on Friday, with the release of the Annual Development Effectiveness Review (pdf) and the African Economic Outlook report (pdf). Egypt\u2019s International Cooperation Minister Rania Al Mashat and Irrigation and Water Resources Minister Hani [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":77670,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[443],"tags":[297,531,11,164],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-77669","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-climate-finance","tag-afdb","tag-climate-finance","tag-enterpriseclimate","tag-green-finance","wpautop","entry"],"acf":{"mongo_id":"642fb753-d523-4793-a84c-f19144081957","is_powered_by":true,"story_type":"1","photo_url":"https:\/\/ent.news\/2023\/5\/1932.jpg","photo_position":"above","related_issue":[77662],"teaser":"","voice_url":""},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.1 (Yoast SEO v27.1.1) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>AfDB falls short on climate finance targets, but pledges to hit the gas pedal on its climate funding initiatives - Climate<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/enterpriseam.com\/climate\/2023\/05\/29\/afdb-falls-short-on-climate-finance-targets-but-pledges-to-hit-the-gas-pedal-on-its-climate-funding-initiatives\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"AfDB falls short on climate finance targets, but pledges to hit the gas pedal on its climate funding initiatives\" \/>\n<meta property=\"og:description\" content=\"AfDB annual meeting concludes: The African Development Bank\u2019s (AfDB) five-day annual meeting of the board of governors concluded in Sharm El Sheikh on Friday, with the release of the Annual Development Effectiveness Review (pdf) and the African Economic Outlook report (pdf). 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Egypt\u2019s International Cooperation Minister Rania Al Mashat and Irrigation and Water Resources Minister Hani [&hellip;]","og_url":"https:\/\/enterpriseam.com\/climate\/2023\/05\/29\/afdb-falls-short-on-climate-finance-targets-but-pledges-to-hit-the-gas-pedal-on-its-climate-funding-initiatives\/","og_site_name":"Climate","article_published_time":"2023-05-29T01:00:18+00:00","og_image":[{"url":"https:\/\/i0.wp.com\/ent.news\/2023\/5\/1932.jpg?fit=%2C&ssl=1","type":"","width":"","height":""}],"author":"enterpriseam admin","twitter_card":"summary_large_image","twitter_misc":{"Written by":"enterpriseam admin","Est. reading time":"4 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