The conference in Glasgow presented some interesting developments for climate finance and our sector. AMDA is continuing to reach out to the relevant stakeholders to help ensure our members can access the available funding and support. To this end, AMDA will soon be a member of the advisory board to the African Development Bank’s Sustainable Energy Fund for Africa (SEFA). This is an exciting opportunity and ensures that the private sector is represented in this important fund, especially given the further capital injection of USD 136 million into the Fund. This will help promote the development and use of green energy on the continent.
- The European Union closed with a commitment to support countries, such as South Africa (USD 8.5 billion under the Just Energy Transition Partnership), transition to clean energy. This program is still not clearly defined by there is a promise of funding for private sector initiatives so we will be following the program as it expands to other African markets.
- Deutsche Bank and the Green Climate Fund (GCF) are launching a $500 million investment program for Sub-Saharan Africa to support the Decentralized Renewable Energy. This includes minigrids for community electrification, Solar Home Systems and solar power systems for productive use.
- InfraCo Africa and Helios launched a new USD 350 million climate-focused investment vehicle. The Climate Energy Access and Resilience (CLEAR) Fund will finance infrastructure and businesses with climate-aligned growth while working to achieve the UN-governed development goals (SDGs). The facility will target specific sectors, including clean energy, transportation and green mobility, sustainable growth and consumption.
- The Earth Fund by Jeff Bezos announced that it will also contribute USD 500 million to the Global Energy Alliance for People and Planet. The GEAPP was recently launched by the Rockefeller and Ikea foundations and aims to accelerate investments in green energy transitions and renewable power solutions in emerging regions, including Sub-Saharan Africa.
- In order to improve the regulatory environment for decarbonisation efforts, Ofgem, the International Energy Agency, the World Bank and the International Renewable Energy Agency (IRENA) launched the Regulatory Energy Transition Accelerator (RETA). RETA is a global initiative that aims to bring together energy regulators to discuss challenges and share best-practices.
- The Alliance for Rural Electrification (ARE), the International Copper Association (ICA), the International Renewable Energy Agency (IRENA), Sustainable Energy for ALL (SEforALL), the United Nations Environment Program (UNEP), and the United National Industrial Development Program (UNIDO) launched the Cornerstone of Rural Electrification Initiative (CORE). This aims to address the immense capacity building and technical assistance needs to support the development of DRE systems as a means to achieve the Sustainable Development Goals (SDGs).
- Over 100 national governments, cities, states and major businesses signed a commitment to end the sale of internal combustion engine vehicles by 2035 in leading markets and by 2040 worldwide.
- More than 100 world leaders — including from Brazil, where the Amazon rainforest is under threat — pledged to end and reverse deforestation by 2030.
- While there are very real barriers for Indigenous communities hoping to influence the COP negotiations, we did see several governments and philanthropies announce $1.7 billion in forest protection and support for Indigenous peoples, specifically in protecting forests and lands under their stewardship, which is where 80 percent of the world’s biodiversity is located.
- Belize became the first country to do a debt conversion for ocean preservation.
- The Ikea Foundation, Bezos Earth Fund and Rockefeller Foundation and partners pledged $10 billion to support the clean energy transition.
- More than 40 countries including Poland, Vietnam and Chile pledged to phase out coal, although China, India and the U.S. are missing from that agreement.
- India committed to net-zero emissions by 2070, which was critiqued for being decades beyond the timeframe when nations need to decarbonize, but also commended for its honesty given what it will really take for India to meet that target. Plus, India’s new commitment to deploy 500 gigawatts of renewables by 2030 is nothing to sneer at.
- While the rest of the world remains dubious, the Biden administration did make a compelling case that the U.S. is back on the scene. The U.S. and EU announced a global pledge to slash methane emissions, and the U.S. doubled its climate finance commitment to $11 billion per year.
- America also joined 20 other countries committing to stop the financing of fossil fuels abroad.
- U.N. Special Envoy on Climate Action and Finance Mark Carney announced that the Glasgow Financial Alliance for Net Zero — a consortium of the largest global financial institutions with $130 trillion in assets under management — are now aligned with net-zero emissions goals (although there’s more to this announcement and other climate finance targets, as we discuss on Political Climate).