The Glasgow Financial Alliance for Net Zero (GFANZ) has announced a new partnership with the African Development Bank, (AFDB) to support climate action by financial institutions across the continent.
The partnership follows the launch of the GFANZ Africa Network in September 2022. This network is focused on unlocking investment into African countries’ just transition by building momentum on transition finance, showcasing African-led climate action, and supporting African financial institutions to ensure they have the tools and guidance to take advantage of the move towards net-zero finance and economies.
GFANZ, the world’s largest coalition of financial institutions committed to the goal of net zero by 2050, signed a Letter of Intent outlining the partnership with the AFDB on the margins of the Africa Climate Summit in Nairobi, Kenya.
GFANZ and the African Development Bank will collaborate through the GFANZ Africa Network and the African Financial Alliance on Climate Change (AFAC), to support the African financial sector to accelerate climate finance for low carbon investments in the region.
AFAC will convene working groups to improve climate data access, climate risk analyses and disclosures, climate target-setting and capacity building for transition planning and finance. GFANZ Africa and AFAC will share tools, resources and joint engagements with the financial sector, and collaborate with partners, including UNEP-FI, the Global Centre for Adaptation, and FSD Africa.
Commenting on the collaboration, Dr. Akinwumi A. Adesina, President of the AFDB said that African financial institutions have a critical role to play in the global transition.
“I am delighted to partner with GFANZ to support a just transition in the region,”he said. “Close collaboration and mutual knowledge sharing is essential for ensuring that finance flows at the scale and pace needed.”
As part of the close collaboration between the organizations, Dr. Timothy Afful-Koomson, Chief Climate Finance Officer of the AFDB will serve as Director of the GFANZ Africa Network. He will work with Dr. Mahmoud Mohieldin, Chair of the GFANZ Africa Network Advisory Board, to drive the progress of GFANZ Africa and deliver on the Africa Board’s priorities.
GFANZ and AFAC will also have cross board representation and Solomon Quaynor, African Development Bank Vice President for the Private Sector, Infrastructure and Industrialization is now on the GFANZ Africa Board. The GFANZ Africa Board will also be represented on AFAC’s Steering Committee.
Also reacting to the partnership, Michael R. Bloomberg, GFANZ Co-Chair and UN Special Envoy for Climate Ambition and Solutions said that African countries have a great opportunity to increase renewable energy production, generate economic growth, and improve public health.
“But only if we unlock more financing to support new projects. This partnership with the African Development Bank will help more African financial institutions support the expansion of clean energy and create more sustainable growth across the continent, “he said.
Story was adapted from AFDB.