EU set to boost post-COP21 climate financing to developing countries

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Blending projects with climate finance is helping to bring many climate change related projects to life in several regions around the globe, thanks to the dedicated commitment and engagement of the European Union.

At the European Union side event “EU and International Climate Finance: delivering and leading ahead”, at COP21 in Paris on Friday, December 4, experts expressed the need to mobilize finances to support climate-related projects on mitigation and adaptation especially in developing countries.

“The EU with its member states, is a global leader in climate finance and we look forward to upscaling these endeavours, especially to developing countries after this Paris climate conference,” announced Pierre Moscovici, European Commissioner for Economic and Financial Affairs, Taxation and Customs.

The EU said it mobilized €14.5 billion in 2014 and looks forward to upscaling the amount until 2020, and further ensuring a rise in official development assistance until 2030.

The EU Commissioner’s comments were supported by Green Climate Fund Director of Mitigation and Adaptation, Tao Wang, who said adequate financial support was needed to strengthen human resource capacity and solidify infrastructure-building in energy and roads in particular.

“Energy generation and transport facility building are among the priority areas,” he said. “We are ready to join hands with other funding partners to support and promote paradigm shift potentials with innovative projects that can be replicated to other needed countries.”

Emphasis was also laid on the need to leverage private investors to engage in carbon emission reduction projects. The European Investment Bank announced the mobilization of over US $100 billion within the next five years to achieve this goal.

“Private finance for energy efficiency for example has been very successful in South Africa and Kenya with large wind power projects financed by the European Investment Bank,” pointed out Jonathan Taylor, Vice-President of Environment and Climate Action at the EIB.

African Development Bank (AfDB) has not only tackled the challenges of climate change, but it has also seized opportunities brought about by climate change to promote climate-resilient and low-carbon development within African countries.

As Africa’s premier institution for mobilizing resources for African economic and social development, the AfDB is committed to providing and leveraging well-placed finance for climate action as a cornerstone of development. 

The AfDB supports African countries’ access to the climate finance they need to move toward climate-smart sustainability. This commitment underpins the Bank’s 2013-2022 Strategy promoting inclusive and green growth in Africa, said Solomon Asamoah, African Development Bank Vice-President in charge of Infrastructure, Private Sector and Regional Integration.

The AfDB has committed almost US $7 billion to projects in support of climate resilient and low-carbon development in the past four years alone.

Statistics from the EU show that the institution mainstreams climate throughout its support to developing countries. In addition, the EU has set up specific climate change windows to crowd-in more public and private financing for low-carbon, climate-resilient investments.