The summit is being convened by President Uhuru Kenyatta of Kenya, President Emmanuel Macron of France, Interim President of the World Bank Group, Kristalina Georgieva and Deputy Secretary-General of the United Nations, Amina Mohammed.
The World Bank Group is stepping up its climate support for Africa. With continued strong support for IDA, our fund for the world’s poorest countries, this will provide USD22.5-billion for Africa for climate adaptation and mitigation for the five years from 2021 to 2025. This more than doubles the commitment to climate-related projects over the past five years. The funding is part of the Bank Group’s 2025 Targets to Step Up Climate Action, launched in December 2018 during the UN’s COP24 in Poland. It will help African countries manage the risks of a changing climate while unlocking new investment opportunities. IFC and MIGA, the Group’s private sector arms, will also continue to ambitiously grow their climate activities in Africa.
Recognising that a number of countries in Africa are among the most vulnerable to global climate shocks and stresses, and in line with these new climate financing commitments and future direction of our Africa Climate Business Plan, more than half of the USD22.5-billion financing will be devoted to supporting adaptation and resilience in Africa. This will amount to about USD12- to USD12.5-billion over five years from 2021 to 2025.
This year, for example, the World Bank will provide the government of Ethiopia with a results-based support programme for adaptation and resilience, the largest done by the World Bank ever in Africa. The new operation, which is currently under preparation, will provide USD500-million for results in improved watershed management and land administration systems.
IFC and MIGA, the group’s private sector arms, will also continue to ambitiously grow their climate activities in Africa
“People across Africa are already experiencing the growing impacts of climate change. This region is particularly vulnerable to increasing floods, droughts and destructive storms,” says interim president of the World Bank Group, Kristalina Georgieva.
In addition, the World Bank, will carry out intensive Nationally Determined Contributions (NDC) engagements with Rwanda and Kenya, under the framework of the NDC Partnership, and with generous support from Germany’s BMZ. The engagements will help accelerate the implementation of, and raise the level of ambition for, their NDCs by supporting systematic mainstreaming and institutionalization of climate adaptation and mitigation across and within key development sectors and governance levels.
The World Bank – as trustee of the Carbon Initiative for Development (Ci-Dev) trust fund – and Kenya Tea Development Agency Power Company (KTDA Power) signed an Emission Reductions Purchase Agreement (ERPA). The contract purchases carbon credits from small hydropower plants, providing power to 350 000 smallholder tea farmers and 39 of their regional tea factories in Kenya. The new ERPA brings the Ci-Dev portfolio to more than USD73-million in implementation.
IFC syndicated a loan for KTDA, and the carbon revenues from Ci-Dev helped increase the project’s debt service coverage ratio and improved the bankability of the project. KTDA is a long-standing private sector partner of IFC. In addition to the hydropower project, IFC invested in a Mombasa warehouse project and supported KTDA with various advisory activities such as financial literacy training for farmers, soil testing for productivity improvement and as development of a wood sourcing strategy among others.
IFC was also named Green Bond Development Bank of 2018 at this year’s Green Bond Pioneer Awards. IFC was awarded this premier recognition for its global leadership, best practice, and innovation in green finance for products such as the inaugural Forests Bond in Kenya, which was a first-of-its kind solution to build capital markets infrastructure to catalyse funding into forest protection.