Uganda and Two Other Countries Secure Shs2 Billion Green Bond
The Nordic Development Fund (NDF) has announced a €500,000 (approximately Shs2 billion) contribution to Uganda, Angola, and Cameroon to address climate financing gaps in Africa.
Under the Green and Resilience Debt Platform, the funds will be used to finance projects with a positive impact on the environment.
Officials from the Nordic Development Fund have stated that the new partnership will address the barriers that many African countries face in accessing green borrowing markets by releasing up to $2 billion in green debt capital markets, thereby increasing the resilience of countries to the effects of climate change.
Ms. Karin Isaksson, managing director of NDF, stated that Africa, particularly sub-Saharan Africa, is already severely impacted by climate change, and climate financing gaps must be filled immediately.
She stated that international development finance institutions and organizations play a critical role in bridging the green financing gap by facilitating the issuance and investment of green bonds in the least developed countries (LDCs).
“This means providing technical assistance and acting as a cornerstone or junior investors in sovereign as well as corporate green bonds,” she explained.
Ms. Isaksson stated that the European Investment Bank and Green Climate Fund will jointly finance the Green and Resilience Debt Platform (GRDP) project preparation work in the remaining four target countries, namely Côte d’Ivoire, Namibia, Rwanda, and Senegal.
ALSO READ: Deadly Stampede in Yemen’s Capital Sanaa Leaves 78 Dead
“The NDF is committing to assist sub-Saharan Africa in addressing climate change, and we intend to allocate 60% of our funding to the region.
She said, “We welcome the Green and Resilience Debt platform as a new tool to unlock large-scale climate financing.”
Ms. Isaksson stated that a combination of investment readiness support, financial de-risking, and technical assistance has the potential to engage the private sector in the provision of climate-resilient solutions that are essential for the development of local and regional green debt ecosystems.
“We will continue to work with our partners to find the best synergies in addressing this shared challenge,” she added.
Mr. Haoliang Xu, assistant secretary general of the United Nations and director of the UNDP Bureau for Policy and Programme Support, stated that the GRDP addresses a fundamental access gap to green debt capital markets for climate resilience.
“Investments in clean energy, water, food security, and climate-resilient infrastructure will have a multiplier effect when it comes to creating green jobs and promoting economic growth,” he said.
Ms. Ahunna Eziakonwa, assistant secretary general of the United Nations and director of the UNDP’s Regional Bureau for Africa, stated that Africa’s energy consumption will increase dramatically over the next few decades due to its rising economies, ambitious development goals, and growing population.
ALSO READ: Baptized with Fire: Minister Nandutu’s Testimony
“At a time when African nations are facing increasing difficulties in financing their development, this partnership will support their efforts to leverage the potential of green bonds and unlock climate finance as a contribution to the transition to clean energy and the creation of climate resilience,” she said.
Green Bonds
Green bonds enable the financing and investment of environmental projects, both new and existing.
The Green Bond principles aim to assist issuers in financing environmentally responsible and sustainable projects that promote a net-zero emissions economy and protect the environment.
According to data from the World Bank, green bonds continue to demonstrate positive potential for addressing the climate financing gaps required to combat global climate change.
In addition, only 5.8 percent of all bonds issued globally in 2021 will be green bonds, and Africa will account for only 0.077 percent of issuances.
NDF, UNDP, the United Nations Capital Development Fund (UNCDF), the European Investment Bank (EIB), the Green Climate Fund (GCF), and the European Union’s Global Green Bond Initiative (GGBI) are collaborating with African countries to design and establish a Green and Resilience Debt Platform for Africa and LDCs to increase the use of green bonds.
The platform will provide participating nations with a combination of investment readiness and financial de-risking assistance and foster an investment-friendly environment.
HEY READER. PLEASE SUPPORT THIS SITE BY CLICKING ADS. DON’T FORGET TO HIT THE NOTIFICATION BELL FOR MORE UPDATES AROUND THE GLOBE.
