By Aliu Akoshile
African Development Bank Group and the World Bank, in partnership with the United Kingdom’s government, have spearheaded a $75 billion multilateral Climate Investement Fund to catalyse the realisation of climate targets on net-zero emissions.
The fund, a capital market mechanism to be listed on the London Stock Exchange, was launched on Tuesday in Baku, Azerbaijan, on the sidelines of the ongoing COP29 global climate summit.
Speaking at the launch, AfDB’s President, Akinwumi Adesina, disclosed that the fund, which is expected to unleash the leveraging power of multilateral development institutions, will raise tens of billions of dollars for Africa.
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He said the CIF will not only support climate-resilient development in Africa but also reinforce London’s growing role as a green finance centre.
Besides the AfDB President, the launch event was also graced by the UK Prime Minister, Sir Keir Starmer, and the President of the World Bank, Ajay Banga.
The new Capital Market Mechanism, according to experts, will issue investment-grade bonds, list on the London market, then distribute funding to help pay for new projects such as wind or solar farms in countries struggling to raise enough cash to build them.
Analysist believe that hosting the fund on LSE is a powerful indication of the UK government’s commitment to mobilising the climate finance needed from all sources to support developing nations
This is more so as the UK government had earlier on Tuesday pledged to cut its carbon emissions by 81% by 2035, in line with recommendations of its Climate Change Committee.
