What
is “Green Finance”?
Green Finance comprises finance flows for “Climate Finance” and finance for “Other environmental objectives”.
AGF focuses on fostering Climate Finance in Africa through:
Mitigation of Greenhouse Gases
-
Activities
that aims at reducing emissions of greenhouse gas (GHG) or enhancing
GHG sequestration;
-
Includes
(but not limited) to the production of Renewable Energy, Energy
Efficiency Projects and Reducing Emissions from Deforestation and
Degradation (REDD) projects.
Adaptation to Climate Change
-
Reducing
the vulnerability of human or natural systems to the impacts of
climate change;
-
Maintaining
and/or increasing the resilience of human and ecological systems to
negative climate changes impacts
The Challenges
-
Banks
inability to assess risk associated to new technologies
-
Lack
of historical data: a relatively new industry and business models
are unproven
-
Lack
of experience and familiarity Climate with new renewable energy
technology
Our
Solution
Offering
partial credit guarantees with attractive terms to Financial
Institution’s appetite combined with Capacity Development to
enhance knowledge of a nascent industry
-
To
mobilize medium to long term funding;
-
Preferential
pricing;
-
First-loss
guarantee as much as pari-pasu guarantee;
-
Flexible
Coverage;
-
Relevant
Tenor.
Qualifying
Projects
- Renewable Energy
- Energy Efficiency
- Technology
- Sustainable Transport
- Cleaner materials, technologies, systems and practices in product value chains
- Waste and wastewater management
- Waste and material recovery and re-use
- Recycling
- Climate-smart agriculture; crops, seeds, technologies and practices
- Sustainable forestry and fisheries
- Organic waste management
- Water protection, conservation, monitoring and management
- Protection of coastlines, watersheds and vulnerable ecosystem resources
- Climate-related services financial services
- Climate-related ICT applications
- Sustainable tourism
- Natural disaster prevention, preparedness and response
- Climate change training, education and consulting services
- Other climate-related service sectors.