Category: Climate Finance

World Bank Looks to Revise its Climate Lending

Earlier this month the World Bank released an “evolution roadmap” to change its mission, operating model and financial capacity with a view to expanding its lending capacity to address global crises such as climate change. It intends to negotiate this with its shareholders in April, with a view to it being approved by the joint World Bank and IMF Development Committee in October this year. Amongst various reforms, the Bank is questioning whether climate vulnerability could substitute poverty as a lending criteria. This could mean a new concessional fund that middle income African countries could access on more affordable terms.
  • Climate Finance, NetZero and the Just Transition

Biden Administration Confirms Intent to Invest US55 billion in Africa in the Next Three years, Including in Climate Change

During December’s second US-Africa Leaders Summit, the Biden administration confirmed its intention to invest $55 billion in Africa over the next three years. In addition to finance, the US intends to support Africa’s membership of the G20, something that the African Union has been seeking for some time. G20 membership is an important means to secure influence and progress agendas within climate negotiations. To remain relevant the US will need to ensure that the intended reshoring of clean technology manufacturing and development in America is done in a way that does not alienate its African trading partners. It will need to closely engage with Africa to ensure the latter benefits from the increased export of critical rare minerals needed for the green transition.
  • Climate Finance

EU Reiterates Promised Investment in African Energy through the Global Gateway

At a follow up meeting between the European Commission and the African Union, the EU reiterated its to increase investment in African clean energy projects and to scale up infrastructure investment. It will do so via the EU-Africa Global Gateway Investment Package, which was announced last year. The additionality of these funds, the role of the private sector and the lack of clarity on what they will be applied to however remains in question.
  • Climate Finance

COP15 mulls over a Global Biodiversity Framework

At this year's Convention on Biodiversity COP15 in Montreal between 7 and 19 December, Parties are deliberating over a Global Biodiversity Framework, which many are hoping will be a "Paris Moment for Nature". The draft framework is likely to be comprised of 21 targets and 10 ‘milestones’ to be achieved by the end of the decade. In our brief we consider linkages and similarities between these negotiations and the climate regime, in particular on finance and the global goal on adaptation.
  • Adaptation, Climate Finance

Developed and Developing World Both Call for World Bank Climate Reforms

Recent comments by World Bank President, David Malpass, ignited furore, when he refused to acknowledge that the burning of fossil fuels is causing climate change. Whilst he has sought to retract this position, it has been used as a platform for global leaders to act on longstanding frustrations with the World Bank’s role in decarbonisation. At the World Bank’s annual general meeting last week Germany and the United States put forward a joint proposal for the “fundamental reform of the World Bank” to its management, including reforms to its approach to climate change. A group of the world’s most vulnerable 20 countries also floated the possibility of suspending the repayment of their World Bank loans, amounting to $685 billion.
  • Climate Finance, COP27

Munich Re has committed to no longer invest in or insure oil and gas

  • Climate Finance

Task Force on Climate Development engages on debt for climate swaps

  • Climate Finance

IMF Floats the Possibility of Debt for Climate Swaps

The IMF has explored the option of debt for climate swaps in a recent working paper, concluding that they may be appropriate in some cases.
  • Climate Finance, COP27

South African Just Energy Transition Partnerships: New and Transformative Finance Lacking

Details around the finance provided under South Africa’s $8.5 billion Just Energy Transition Partnership have been vague and unclear, with worrying signs that the terms of finance will make it unfit for purpose.
  • Climate Finance, NetZero and the Just Transition

US Pledges $5 million to Address Methane Emissions in Africa

  • Climate Finance, NetZero and the Just Transition

African Climate Wire is an initiative of Climate Legal, a climate change law and policy specialist consultancy, based in South Africa and operating across the continent.

Our independent reporting is made possible with the generous support of the African Climate Foundation. Our opinions, findings, interpretations and conclusions remain our own, and do not in any way represent those of the African Climate Foundation.

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