Africa Climate Change Fund
The contribution of Africa to global greenhouse gas emissions is minimal. However, the combination of certain geographical and economic factors and its dependence on natural resources make Africa the continent most vulnerable to the adverse effects of climate change. This vulnerability compromises the continent's development and threatens millions of Africans and their livelihoods. According to current estimates, the negative effects of climate change are already reducing Africa's GDP by about 1.4 per cent, and the costs arising from adaptation to climate change are set to reach an annual three per cent of GDP by 2030.
In 2011, the African Development Bank (AfDB) mobilised $US 596 million for its regional member countries (RMCs) to use on adaptation projects and another $US 925 million for mitigation projects. Figures which in 2012 reached $US 523 million for adaptation and $US 1,708 million for mitigation, thus making AfDB the foremost institution for financing low-carbon development on the continent. This has been made possible thanks to climate finance instruments created and/or administered by the Bank, such as the Climate Investment Funds (CIFs), the Global Environment Facility (GEF), the Sustainable Energy Fund for Africa (SEFA), the Africa Water Facility (AWF) and the Congo Basin Forest Fund (CBFF). The Bank has already made significant achievements in financing climate-change resilient and low-carbon growth in the region. In comparison with other continents, however, Africa receives only a meagre share of climate funding.
Also, in line with its ten-year strategy 2013-2022, which is particularly focused on a transition to greener growth, the Bank's Board of Directors approved the creation of the Africa Climate Change Fund (ACCF) in April 2014. The ACCF complements AfDB's own resources and the climate-change related trust funds managed by the Bank ((SEFA, CBFF, Clim-Dev, etc.) The ACCF intends to increase climate funding mobilised for activities that take account of climate change in African countries. Thus, the fund was designed to become a catalyst with a scope broad enough to cover a wide range of climate-resilience and low-carbon activities.
Presentation and objectives
A thematic, bilateral trust fund with an initial contribution of 4,725 million Euros from Germany, the Africa Climate Change Fund aims to support African countries in their transition to a more climate-resilient and low-carbon mode of development. The ACCF is hosted and managed by the African Development Bank's environment and climate change division. It is implemented in collaboration with other departments of the Bank.
The ACCF specifically aims to:
- Assist African countries to access larger amounts of climate finance and use funds provided more effectively;
- Help African countries to account for climate change in the their growth strategies and policies, by means of upstream diagnostics and providing technical assistance;
- Facilitate African countries' development of investment plans and climate-resilient and low-carbon projects;
- Co-finance climate-resilient and low-carbon projects;
- Collect, consolidate, analyse and disseminate information and learnings related to climate-resilient and low-carbon development;
- Provide capacity-building in climate change and green growth for African countries and stakeholders at national and regional levels;
- Help African countries to prepare for conferences of parties to the United Nations Framework Convention on Climate Change.
The direct beneficiaries of ACCF include African governments, NGOs, research organisations and regional institutions. The Bank may also be an indirect beneficiary of the fund. The eligibility of NGOs and research organisation for ACCF funding will depend, among other things, on their credibility and their outcomes in terms of financial governance. Also, they need to be based in Africa.
Eligible areas of activity
The scope of the ACCF is sufficiently wide to permit a broad range of activities, including: preparation for accessing climate funding; integration of climate change and green growth into strategic documents and/or projects; preparation and funding of adaptation and mitigation projects; climate change-related knowledge management and information sharing; capacity building; preparation of climate change-resilient and low-carbon strategies and policies; green growth analysis work; advocacy and awareness-raising.
Technical Department and Task Manager
Louise Brown, ACCF coordinator
- 14/12/2015 - Italy joins Africa Climate Change Fund with €4.7 million; Fund grants US $0.36 million to enhance climate resilience in Zanzibar
- 23/10/2015 - ACCF grants USD 1.35 million to enhance climate finance readiness in Cape Verde, Kenya and Swaziland
- 27/08/2015 - First two projects of Africa Climate Change Fund approved to support climate finance readiness in Africa
- 08/05/2015 - AfDB’s new fund paves the way for climate finance readiness in Africa: Africa Climate Change Fund Annual Report
- 22/01/2015 - AfDB Climate Change Committee shares outcomes of COP20 and looks ahead to Paris climate talks