The Glasgow Financial Alliance for Net Zero (GFANZ), the world’s largest coalition of financial institutions committed to the goal of net zero by 2050, has announced a new partnership with the African Development Bank to support climate action by financial institutions across the continent.
GFANZ and the African Development Bank will collaborate through the GFANZ Africa Network and the African Financial Alliance on Climate Change (AFAC), to support the African financial sector to accelerate climate finance for low carbon investments in the region.
AFAC will convene working groups to improve climate data access, climate risk analyses and disclosures, climate target-setting and capacity building for transition planning and finance. GFANZ Africa and AFAC will share tools, resources and joint engagements with the financial sector, and collaborate with partners, including UNEP-FI, the Global Centre for Adaptation, and FSD Africa.
As part of the close collaboration between the organizations, Dr. Timothy Afful-Koomson, Chief Climate Finance Officer of the African Development Bank, will serve as Director of the GFANZ Africa Network. He will work with Dr. Mahmoud Mohieldin, Chair of the GFANZ Africa Network Advisory Board, to drive the progress of GFANZ Africa and deliver on the Africa Board’s priorities.
GFANZ and AFAC will also have cross board representation and Solomon Quaynor, African Development Bank Vice President for the Private Sector, Infrastructure and Industrialization is now on the GFANZ Africa Board. The GFANZ Africa Board will also be represented on AFAC’s Steering Committee.
The partnership follows the launch of the GFANZ Africa Network in September 2022. This network is focused on unlocking investment into African countries that transition by building momentum on transition finance, showcasing African-led climate action, and supporting African financial institutions to ensure they have the tools and guidance to take advantage of the move towards net-zero finance and economies.
African Financial Institutions Have A Critical Role To Play
Dr. Akinwumi A. Adesina, President of African Development Bank Group stated that African financial institutions have a critical role to play in the global transition. “I am delighted to partner with GFANZ to support a just transition in the region. Close collaboration and mutual knowledge sharing is essential for ensuring that finance flows at the scale and pace needed,” he said.
Solomon Quaynor, Vice President for Private Sector, Infrastructure and Industrialisation, African Development Bank also said he is honoured to serve on the Board of the GFANZ Africa Network.
“The agreement we signed will help to ensure that the African Financial Sector, across all stakeholders and participants, raise their awareness and understanding of climate risks and opportunities, as well as disclosure standards, and are able to access the blended finance available to finance the transition.”
Solomon Quaynor
Michael R. Bloomberg, GFANZ Co-Chair and UN Special Envoy for Climate Ambition and Solutions indicated that African countries have a great opportunity to increase renewable energy production, generate economic growth, and improve public health – but only if it unlock more financing to support new projects. “This partnership with the African Development Bank will help more African financial institutions support the expansion of clean energy and create more sustainable growth across the continent”.
A Strong Signal of The Growing Momentum Behind Climate Finance In Africa
Mark Carney, GFANZ Co-Chair and UN Special Envoy for Climate Action and Finance said the GFANZ Africa Network’s partnership with the African Development Bank is a strong signal of the growing momentum behind climate finance in Africa. “As the world moves toward a net-zero global economy, it is essential that we support financial institutions in the region to seize the opportunities of the transition while also supporting the sustainable development of African economies”.
Mary Schapiro, GFANZ Vice Chair and Head of Secretariat for GFANZ and the Task Force on Climate-related Financial Disclosures noted that the GFANZ’s Regional Networks are fundamental to ensuring that the transition to net zero is truly global and inclusive.
“In collaboration with the African Development Bank, we share a vision of unlocking climate finance in the region through more engagement with African financial institutions. This partnership will help to ensure that GFANZ’s guidance reflects regional contexts, opportunities and challenges – and we look forward to deepening our collaboration with the AfDB to leverage our collective expertise and resources to drive meaningful progress towards net zero.”
Mary Schapiro
Dr. Mahmoud Mohieldin, Chair of the GFANZ Africa Network Advisory Board and UN Climate Change High Level Champion for Egypt indicated that the net-zero just and equitable transition presents an opportunity for Africa to create real progress across its sustainable development goals and finance solutions to secure Africa’s potential for climate resilience. “This partnership speaks to the importance of engaging with financial institutions from across the continent to be part of that transition, and I am delighted to welcome Dr. Timothy Afful-Koomson as Director of the GFANZ Africa Network to join us in this pursuit”.
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