Côte d’Ivoire will create a new $500m green blended finance facility to support sustainable initiatives in the country.
In a statement announcing the news, the International Monetary Fund said that the new facility will be created under the African Green Banks Initiative – an organization working to create $1.5 billion worth of green investment facilities by 2030.
Blended finance facilities are designed to encourage investment into high-impact projects by combining private and public sources of financing with varying risk tolerances and accepted returns on investment.
Côte d’Ivoire’s new facility will be capitalized by public sources such as the national government, the Green Climate Fund, the Global Environment Facility, multilateral development banks, and development finance institutions, as well as private sources.
African countries receive relatively little climate finance support, despite being both disproportionately impacted by the effects of climate change and well-placed to drive ‘green industrialization.’
In addition to abundant solar resources, the continent possesses the bulk of the critical minerals that the world needs to decarbonise energy and transport, one-third of the global potential for additional carbon sequestration from natural capital, and the greatest potential to increase sustainable food production.
