KEY POINTS
- Ivory Coast unveils $500M green fund to combat climate change.
- Fund supported by IMF, private investors.
- Aims to bridge Africa’s climate finance gap.
Ivory Coast is launching a $500 million green finance fund designed to catalyze sustainable development and combat climate change.
The initiative, supported by the International Monetary Fund (IMF), seeks to bridge the significant climate finance gap in Africa while promoting economic growth through eco-conscious projects.
Tackling Africa’s climate finance gap
Although Africa contributes only a small fraction of global emissions, it is disproportionately affected by climate change. The continent receives just 1% of global climate finance, leaving a vast gap in resources for mitigation and adaptation efforts. Ivory Coast’s new green finance facility aims to address this inequity by financing environmentally sustainable projects throughout the region.
As reported by Reuters, this initiative aligns with the broader African Green Bank Initiative, a continent-wide effort to establish a $1.5 billion network of green investment facilities by 2030. The goal is to facilitate Africa’s transition toward a more sustainable, resilient future, directly addressing the effects of climate change that have intensified across the continent in recent years.
Financing mechanisms and sources
The $500 million fund will be capitalized by a combination of public and private sources. This includes contributions from the Ivory Coast government, the Green Climate Fund, multilateral development banks, and development finance institutions. Private investors will also be encouraged to participate, helping to diversify and strengthen the fund’s financial base.
Strengthening Ivory Coast’s environmental agenda
As Africa’s leading cocoa producer, Ivory Coast is keenly aware of the economic risks posed by climate change. The government is also implementing new regulations to foster additional green finance mechanisms, including the creation of a regulatory body for managing carbon credits. These measures are intended to reinforce the country’s broader environmental and economic goals.
The establishment of the green finance fund comes at a critical moment, as the continent grapples with increasingly frequent and severe climate-related events, including droughts, floods, and cyclones. The fund’s launch underscores Ivory Coast’s commitment to reducing the impact of climate change while promoting sustainable economic growth.
In March, the IMF approved a $1.3 billion, 30-month lending arrangement for Ivory Coast under its Resilience and Sustainability Facility. This funding is part of a broader effort to support the country’s climate resilience and economic reforms, aimed at mitigating the long-term effects of climate change on the nation’s economy.
