AfDB's green financing strategy in Africa

The African Development Bank is on a mission to significantly double its climate financing to $25 billion between 2020 and 2025. This bold target is aimed at mobilizing an additional $100 billion for low-carbon and climate-resilient investments across the African continent. CNBC Africa's Flora Limukii recently had an in-depth conversation with Kevin Kariuki, the Vice President for Power, Energy Climate Change & Green Growth at the African Development Bank, to shed light on the bank's green financing strategy and its impact. Kariuki provided insights on the bank's progress in meeting its climate finance commitments, particularly in the allocation of funds for mitigation and adaptation projects. He highlighted that the bank has consistently exceeded its targets, with a significant portion of the allocated funds directed towards adaptation finance. As of December 2023, the bank had already allocated $14 billion as climate finance, with a substantial portion earmarked for adaptation initiatives. Kariuki expressed confidence in the bank's ability to meet the $25 billion target by leveraging its current lending trajectory. Emphasizing the importance of climate financing, Kariuki stressed the bank's commitment to driving sustainable and green growth in Africa. He underscored the crucial role of renewable energy projects in advancing the continent's energy access and sustainability goals. Despite Africa accounting for only 2% of global renewable energy investments, the African Development Bank has been a significant player in financing renewable energy projects. Since 2016, the bank has financed energy investments of nearly $9 billion, with a substantial increase in the proportion of investments allocated to renewable energy projects. Renewable energy investments have surged from 9% in 2016 to a remarkable 87% currently, reflecting the bank's focus on driving the transition to clean energy. Kariuki elaborated on some of the impactful renewable energy projects that the bank has supported across different regions in Africa. Notable projects include the Nur Wazizate concentrated solar power project in Morocco, the Lake Turkana wind project in Kenya, the Redstone concentrated solar power project in South Africa, and investments in Egypt and Tunisia. These projects highlight the bank's commitment to scaling up renewable energy infrastructure and fostering sustainable development in the region. Looking ahead, Kariuki discussed Africa's ambitious targets for renewable energy capacity expansion, emphasizing the continent's vast potential in renewable energy sources such as solar and hydroelectric power. Africa aims to increase its renewable energy capacity from 56 gigawatts to 300 gigawatts, surpassing the global targets set at COP 28. The African Development Bank is poised to play a key role in supporting Africa's transition to a greener and more sustainable energy landscape, leveraging its resources and expertise to drive impactful change. With Africa's abundant renewable energy potential waiting to be harnessed, the bank remains committed to catalyzing investments in clean energy projects and fostering a more sustainable future for the continent.