African Development Bank Launches New Tools for SMEs to Tap Opportunities for Green Investment
The African Development Bank has released a series of toolkits to assist small and medium enterprises in tapping green investment opportunities contained in countries' Nationally Determined Contributions (NDCs) under the Paris Agreement.
The toolkits, released under the Bank’s Private Sector Investment Initiative for NDCs, were launched on the sidelines of Africa Climate Week, which took place in Libreville, Gabon, from August 29 to September 2.
The package comprises toolkits on climate risk screening and opportunity assessment tool, business carbon footprint tool, and a guidance note on mainstreaming climate and green growth into Bank’s line of credits. They will help strengthen the capacity of financial institutions and small companies to invest in climate action under the NDCS.
Dorsouma Al Hamndou(link sends e-mail), African Development Bank Officer in charge of Climate Change and Green Growth, said the toolkits were designed to promote the integration of climate actions into private and financial sector lending operations in African financial institutions.
“They will help African SMEs and financial institutions to develop and finance climate-informed projects and support the implementation of the Paris Agreement in African countries,” he said.
It is estimated that the cost of Africa’s adaptation to climate change will reach as high as $30 billion a year by 2030. To help address this gap, the African Development Bank in 2018 launched the African Financial Alliance for Climate Change (AFAC) as a platform for Africa’s financial sector to mobilize climate finance and stimulate low carbon and climate resilient investments.
The African Development Bank and Natural Eco Capital hosted the session, which featured a discussion on how to scale climate action through climate technology and innovation by small- and medium-sized enterprises (SMEs) in Africa. Natural Eco Capital is a sustainability firm that partners with government, financial institutions and investors on emerging issues relating to natural capital, sustainable finance, climate change and low carbon economy.
Natural Eco Capital CEO Eugene Itua noted that small and medium enterprises play a vital role in the economic performance of African countries. He said more needed to be done to make these businesses aware of commercial opportunities contained in the NDCs.
Anthony Nyong, Africa Regional Director, Global Centre on Adaptation, said the new toolkits would offer a pathway for small firms to take advantage of existing opportunities. “Climate change is a challenge and an opportunity,” he added.