African Development Bank Approves $3 Billion Climate Finance Facility

The African Development Bank Group (AfDB) today approved the creation of a $3 billion Climate Action Facility, designed to accelerate green growth and climate adaptation across the African continent. The facility will provide concessional financing and guarantees for renewable energy projects, climate-smart agriculture initiatives, and infrastructure resilient to extreme weather events.

AfDB President Dr. Akinwumi Adesina announced the facility during the Bank's Annual Meetings in Nairobi, emphasising that Africa contributes less than 4% of global emissions yet bears disproportionate impacts of climate change. The new financing will help bridge the continent's climate finance gap, estimated at $250 billion annually through 2030.

The facility is expected to mobilise an additional $12 billion in co-financing from development partners and the private sector. Priority will be given to projects in the Sahel region, the Horn of Africa, and Small Island Developing States, areas most vulnerable to droughts, floods, and rising sea levels.