Bridging the climate financing gap in Africa

The European Investment Bank (EIB) is taking significant steps to address the pressing issue of climate change in Africa through innovative initiatives and partnerships. With the scarcity of public funding, the EIB recognizes the importance of public-private partnerships to mobilize climate finance at scale. Ambroise Fayolle, the Vice-President of the EIB, shared insights on the bank's roadmap and key initiatives during an interview with CNBC Africa's Flora Limukii. Fayolle highlighted the critical need for stringent measures to mitigate the projected 15 per cent loss of Africa's gross domestic product by 2030 due to climate change. Fayolle discussed the EIB's strategic plan to double climate action activities by 2025 and triple efforts for adaptation, emphasizing the focus on de-risking, private sector collaboration, and debt restructuring for countries facing natural disasters. He also mentioned specific projects like a debt swap for nature in Barbados and initiatives to combat plastic pollution and promote a circular economy. The EIB's Clean Ocean Initiative, developed in collaboration with France, Germany, Italy, and Spain, aims to invest four billion euros in projects to reduce plastic pollution and protect marine ecosystems. In addressing the biodiversity crisis, Fayolle underscored the EIB's commitment to implementing global biodiversity frameworks through initiatives like reforestation projects. The EIB's strategy of promoting renewable energy over fossil fuels aligns with its decision to cease financing fossil fuel projects in 2019. Fayolle highlighted the EIB's focus on green energy projects in Africa, with an annual financing amounting to 5 billion euros, demonstrating a strong commitment to advancing sustainable development in the region. Despite not specifying geographical commitments, Fayolle assured that Africa remains a priority for the EIB, with consistent annual financing ranging between 4 and 5 billion euros. The EIB's dedication to combating climate change and promoting sustainable development in Africa underscores the urgency and importance of addressing environmental challenges through innovative and collaborative approaches.