13 December 2013
Projects designed to bolster private investment in effective climate solutions in six African countries have received $330 million in funding from the African Development Bank Group, the bank announced late last month. Projects in Burkina Faso, Democratic Republic of Congo, Ghana, Kenya, Mali and Mozambique were the winners of a global competition run by Climate Investment Funds, a pair of funds established by the AfDB to help developing countries pilot innovations in clean technology, sustainable forestry, renewable energy and climate-resilient development.
Private investment in renewable energy can be risky, particularly in developing countries, the bank said. The upfront capital costs are high, and return on investment is often slower than better-known investments, such as fossil fuels. Mitigating these factors, along with the need to address the lack of understanding of the value of climate investment were the underlying reasons the CIF decided to set aside the special funds, according to AfDB.
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