This year’s UN Climate Change Conference (COP29) ended with a public climate finance goal of $300 billion to support developing nations’ climate adaptation efforts. The conference saw a number of bilateral agreements between African and international partners that push for equitable global solutions to climate change, as well initiatives to support the continent’s carbon credits market under Article 6 of the Paris Agreement.
AfDB’s Climate Action Window
Pan-African financial institution the African Development Bank (AfDB) introduced a new Climate Action Window (CAW) Technical Assistance Facility, which aims to bridge the continent’s climate finance gap by advancing climate projects in 37 low-income African nations. The CAW will initially allocate $56 million to support adaptation and mitigation projects in line with the Paris Agreement and national climate plans.
Supported by contributions from the UK, the Netherlands, Germany and Switzerland, the facility will accept proposals from governments, regional organizations, NGOs and UN agencies in eligible countries until February 5, 2025. Funding awards will range between $260,000 and $1.3 million per project. With more than 80 identified projects totaling $800 million, the CAW is poised to expand efforts in climate adaptation and foster partnerships with global climate funds.
IFC’s Solar Solutions
Global development institution the International Finance Corporation (IFC) approved a $25 million investment to support off-grid solar systems across sub-Saharan Africa. The investment will be directed to non-profit investment fund Acumen’s Hardest-to-Reach initiative (H2R). The initiative will support solar companies across the continent through flexible debt and capital investment.
Aiming to reduce greenhouse gas emissions from kerosene and diesel use, the H2R initiative will provide millions of people across the continent to household solar electricity. The initiative serves as part of IFC parent company the World Bank Group’s Mission 300, a joint initiative with the AfDB that aims to connect 300 million people across the continent to sustainable electricity by 2030.
Benin-Norway Bilateral Agreement
Benin and Norway signed a bilateral agreement that will see Norway support and finance renewable energy initiatives in Benin. The initiatives will allow Benin to generate carbon credits for Norway to purchase.
The agreement also includes support for solar and off grid power projects, as well as technical assistance for Benin to monitor emission reduction activities.
Zambia-Singapore Article 6 Carbon Credit Deal
Singapore and Zambia signed an agreement to collaborate on carbon credits aligned with Article 6 of the Paris Agreement. The MoU outlines the criteria and procedures for the transfer of carbon credits to Singapore, offering a pathway for the country to shrink its carbon footprint.
In turn, the development of carbon projects in Zambia will allow the country to direct finances to sustainable projects, which will support job creation, access to clean resources and better energy security in local communities.
Zambia’s Bilateral Agreement with Norway, Sweden
In addition to Singapore, Zambia also signed bilateral agreements with Norway and Sweden. The MoUs aim to catalyze investment in greenhouse emissions reductions by supporting a carbon market policy framework under Article 6 of the Paris Agreement.
Zambia’s agreements with Norway, Sweden and Singapore highlight the African country’s commitment towards leveraging international cooperation to address climate change while fostering sustainable development.
