The African Development Bank Group has signed a declaration with the coalition of development finance institutions to promote green bond markets in Africa.

AfDB’s Group Vice President and Chief Financial Officer, Hassatou N’Sele, said this in a statement on the bank’s website.

Africa’s engagement in the green bond market currently represents less than one per cent of the more than 2.2 trillion dollar community green bond issued in 2022.

Ms N’Sele said the institutions in the Global Green Bond Initiative comprised the European Investment Bank, European Bank for Reconstruction and Development, and Italy’s Cassa Depositi e Prestiti.

Others are the Spanish Agency for International Development Cooperation, Green Climate Fund and Germany’s KfW development bank, while PROPARCO of the AFD Group act as a consortium of European development finance institutions.

The AfDB’s chief financial officer signed the declaration with representatives of the coalitions’ institutions on the sidelines of the 2023 UN Climate Change Conference (COP28) in Dubai, United Arab Emirates.

Ms N’Sele said the engagement was to tap from the Global Green Bond Initiative technical assistance programme announced by European Commission President Ursula von der Leyen in June 2023.

“The initiative will help private capital flow from institutional investors into climate and environmental projects in EU partner countries, increasing their access to capital.

”Providing technical assistance to green bond issuers in emerging markets and developing economies, and crowding in private investors through a dedicated de-risked fund. This will act as an anchor investor in green bonds issued in EMDEs. The anticipated impact can be up to 15-20 billion euro in green investments,” she said.

Ms N’Sele said the partners supported the origination of green bonds, development and identification of pipelines of green projects, and the development of credible and coherent green bond frameworks.

“This joint declaration among us to collaborate on technical assistance on green bonds in Africa is our commitment to work together and it is significant and impactful. There cannot be impactful development in Africa without vibrant local capital markets,” the AfDB official said.

Ms N’Sele highlighted the AfDB’s engagements in the green bond market, including issuing over 10 billion dollar worth of green and social bonds in 2022 to support sustainable progress across Africa.

“Let’s help Africa fully leverage the power of green bonds, and we can contribute together towards a sustainable future for Africans,” she said.

Mr Stefano Signore of the European Commission’s partnerships directorate described the partnership with the AfDB as an important milestone in efforts to mobilise green bonds in emerging developing economies.

 (NAN)