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Abu Dhabi, UAE: The Global Climate Finance Centre (GCFC), a COP28 legacy initiative focused on catalysing climate investments and solutions, head-quartered in Abu Dhabi Global Market (ADGM), assumed today the role of the host and secretariat of the Africa Green Investment Initiative (AGII), the UAE’s $4.5 billion finance initiative aiming to unlock Africa’s green energy potential.
Currently, investment in African renewables represents only 2% of the global total, falling short of the estimated $60 billion a year needed by 2030.
Launched at the Africa Climate Summit (ACS), under the UAE’s Etihad 7 programme, the AGII initiative brings together private, public, and development capital from UAE’s climate champions including Abu Dhabi Fund for Development, Masdar, AMEA Power, and Etihad Credit Insurance, with Africa50 as the strategic partner.
The GCFC acts a global convener, bringing together key stakeholders from governments, financial institutions, philanthropic organizations, and the private sector to scale up investment and address key barriers hindering investment flows to climate solutions.
Building on the Africa Green Industrialization Initiative launched at COP28 by HE William Ruto, President of the Republic of Kenya, GCFC supports African countries in their green industrialization efforts to offer accelerated end-to-end green growth solutions, catalyzing economic green growth on the continent.
GCFC actively supports green growth by fostering financial innovation for climate solutions, delivering market intelligence to lower perceived risks and improve decision making, mobilizing additional capital to move project pipelines, and accelerating project development through technical assistance and capacity building. By tackling these challenges, and with support from additional partners, GCFC and AGII aim to empower stakeholders across Africa and drive a sustainable future for the continent.
GCFC and AGII collaboration includes the following areas of focus:
- Project Pipeline Acceleration: The partnership aims to advance the development and approval of projects submitted by AGII partners and other key stakeholders.
- Capacity Building: Joint efforts will focus on building the capacity of both public and private sector players in Africa and the UAE.
- Innovation and Problem-Solving: The GCFC and AGII will collaborate to develop innovative climate finance solutions to address systemic challenges that have hindered green project expansion in Africa.
- Market Intelligence & Analysis: In collaboration with other institutions, the partnership will generate market intelligence to guide effective on-the-ground action.
Mercedes Vela Monserrate, CEO of the Global Climate Finance Centre said, “The Global Climate Finance Centre (GCFC) takes a significant step towards unlocking Africa's green potential by hosting and acting as the secretariat of the Africa Green Investment Initiative (AGII). By working together with our founding members, we can leverage a robust ecosystem that catalyses finance to supports innovative green projects, empowers stakeholders, and fosters a sustainable future for Africa.”
Mohamed Jameel Al Ramahi, Chief Executive Officer of Masdar said, “Today’s announcement will mobilize capital and increase the adoption of clean renewable energy across Africa, helping to accelerate social and economic development for millions of people across the continent. As the largest pure-play renewable energy company in Africa, we have committed an additional US$2 billion of equity as part of the Africa Green Investment Initiative and aim to mobilize a further US$8 billion through project finance and our Infinity Power platform, targeting the delivery of 10 GW of clean energy capacity in Africa by 2030.”
Alain Ebobissé, Chief Executive Officer of Africa50 said, “As a strategic partner of the Africa Green Investment Initiative, Africa50 is leveraging its project development and fund management expertise to scale up investments and deploy capital into transformational green projects. We have a robust pipeline of bankable infrastructure projects that can support the continent’s dual imperative of decarbonizing its industrialization, while accelerating its socio-economic development. We look forward to working closely with The Global Climate Finance Centre and all partners, to drive innovative models and further unlock much-needed climate finance, which will help fast-track the continent’s energy transition.”
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About GCFC
Based in ADGM, Abu Dhabi’s leading International Finance Centre, the Global Climate Finance Centre (GCFC) is a COP28 legacy initiative focused on fostering innovation, convening stakeholders, and providing capacity building for financial actors globally.
GCFC was announced during the UN Conference of the Parties (COP28) in the UAE, and is a collaborative initiative between ADGM, ADQ, BlackRock, CIFF, GFANZ, HSBC, Masdar, NinetyOne, and World Bank.
Serving as a lasting outcome from COP28, this independent hub in Abu Dhabi, will continue to support the scale-up of well-functioning, aligned green finance markets to drive the growth of climate finance.
About Africa Green Investment Initiative (AGII)
Launched at the Africa Climate Summit by the COP28 Presidency, Africa Green Investment Initiative is a transformative partnership that brings together US$ 4.5 billion of private, public, and development capital from UAE’s champions including Abu Dhabi Fund for Development, AMEA Power, Etihad Credit Insurance, and Masdar, with Africa50 as the strategic partner.
The initiative helps create a transformative cycle of change in Africa’s green industrialization landscape by bringing together key stakeholders who are committed to practical on-the-ground action, by focusing on executing green projects, and supporting the expansion of conducive enabling policies. The initiative also seeks to create pathways for other partners to join and amplify this UAE-led effort to convert words into action.
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Simon Hailes
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Edelman Smithfield
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