The Green Climate Fund approves $170.9m in co-financing for African Development Bank’s LEAF program
The Board of the Green Climate Fund (GCF) has approved $170.9 million in financing for the African Development Bank’s Leveraging Energy Access Finance Framework (LEAF) program. LEAF aims to unlock commercial and local-currency financing for decentralized renewable energy (DRE) projects in six program countries: Ghana, Guinea, Ethiopia, Kenya, Nigeria and Tunisia.
The Green Climate Fund’s financing is part of an overall $900 million program budget whose objective is to scale up roll-out of mini-grids, solar home systems, and commercial and industrial solar solutions in the program countries.
Tony Clamp, acting Director of GCF’s Private Sector Facility, said, “GCF is delighted to partner with the African Development Bank to support this timely and critical program for decentralised renewable energy across these six African countries. Green Climate Fund’s commitment will help unlock much-needed commercial capital and local currency financing to help overcome financing barriers exacerbated by Covid-19.”
Under LEAF, Africa’s abundant solar resources will be harnessed to provide renewable energy to 6 million people and businesses, and will also prevent 28.8 million tonnes in CO2 emissions over the lifetime of the systems.
By deploying credit enhancement instruments and technical assistance, LEAF will strengthen capital markets and crowd-in private sector investors, including local financial institutions, thereby enhancing their financial and technical capacity to finance businesses in the fast growing DRE market segment comprising of solar home systems, green mini-grids, and solar solutions for commercial and industrial sectors. The program will also provide requisite support to strengthen the enabling environment and increase private sector investment in this market segment.
“GCF’s approval of LEAF is a significant boost for the African Development Bank’s twin ambitions of accelerating electricity access and supporting the transition to clean energy on the continent using decentralized renewable energy solutions, and moreover facilitated through local financing,” said Dr. Kevin Kariuki, the African Development Bank’s Vice President for Power, Energy, Climate and Green Growth.