A big one from the UAE to Africa: The UAE is committing USD 4.5 bn to help Africa advance clean energy projects, according to a statement by the COP28 Presidency. The funds pledged by the upcoming COP host will be provided by the UAE’s renewables giant Masdar, the Abu Dhabi Fund for Development, the country’s export credit agency Etihad Credit Ins., and Dubai-based renewables firm Amea Power, it said.

What we know: The Abu Dhabi Fund for Development will be providing USD 1 bn for basic infrastructure, while Etihad Credit Ins. will provide USD 500 mn in credit ins. to help lower risks and make private capital available. Masdar will be committing USD 2 bn of equity and mobilize an additional USD 8 bn in project finance to deliver 10 GW of clean energy capacity in the continent by 2030. Amea Power will mobilize USD 5 bn, with USD 1 bn in equity investments and USD 4 bn from project finance to fund 5 GW of renewable energy capacity in Africa by 2030. Africa50 — an investment platform launched by African governments and the Africa Development Bank (AfDB) — will act as a strategic partner to help identify initial projects, according to the statement.

What they said: "This initiative builds on the UAE's track record of commercially driven, innovative blended finance solutions that can be deployed to promote the adoption of clean energy in emerging and developing nations. This multi-stakeholder partnership approach is designed to accelerate sustainable economic progress, address the challenge of climate change and stimulate low carbon growth,” COP28 President-Designate Sultan Al Jaber said.

REMEMBER- Climate change is a growing threat for Africa, which is responsible for only a fraction of the world’s greenhouse gas emissions. The continent is in need of a 10-fold increase in climate adaptation funding to USD 100 bn annually by 2030 to help boost resilience against the impact of climate change, new research from the Global Center on Adaptation showed.

And that’s not all: The UAE Carbon Alliance has pledged to purchase USD 450 mn in African carbon credits by 2030, Wam reports. The pledge was announced during the Kenya-hosted inaugural Africa Climate Summit, where the UAE alliance signed a non-binding Letter of Intent with the Africa Carbon Markets Initiative (ACMI) for the purchase.

About the alliance: The UAE Carbon Alliance is a coalition tasked with accelerating the development of a carbon market ecosystem. Launched in June, the initiative seeks to set up “national cooperation in decarbonisation efforts, develop innovative standards and frameworks for constructive carbon financing, increase education and knowledge of carbon markets, and support organizations on greenhouse gas emission reduction projects.” Its founding members include AirCarbon Exchange (ACX), First Abu Dhabi Bank (FAB), Mubadala, Abu Dhabi National Energy Company (Taqa), and Masdar, with the UAE Independent Climate Change Accelerator (UICCA) as its secretariat.

More financing in the pipeline: Climate Asset Management — a JV between HSBC Asset Management and specialist climate change investment and advisory firm Pollination — also announced a USD 200 mn investment in projects producing ACMI credits, Reuters reports.

And there are other generous investors: Britain said fresh UK-backed projects worth GBP 49 bn will be announced during the Africa Climate Summit, which concludes today, according to a statement. The projects will focus on “mobilizing finance for climate action and help people manage the impact of climate change across the continent.” Germany will also announce EUR 450 mn in climate finance commitments at the summit, including to help with the construction of a Kenyan fertilizer plant using green hydrogen, Bloomberg writes. It will also abolish EUR 60 mn in debt owed to Kenya in exchange for the funds being spent on green projects.

IN OTHER NEWS FROM THE SUMMIT– Irena launches a fresh renewable energy partnership in Africa: The International Renewable Energy Agency (Irena), in cooperation with Kenya, Denmark, Germany and the UAE launched The Accelerated Partnership for Renewables in Africa (APRA) to promote renewable energy in Africa, according to a statement. APRA will focus on mobilizing finance, providing technical assistance and capacity building and encouraging the private sector to take part, the statement notes. The partnership will also include Ethiopia, Namibia, Rwanda, Sierra Leone and Zimbabwe.

And more climate financing drumming from COP: The COP28 Presidency, the African Union, and Kenya stressed the importance of having a more accessible and affordable climate finance to developing nations, including those in Africa, according to a joint statement. “It is vital that we restore trust in the multilateral process if we are to achieve progress. Developed countries must deliver on their historical commitments, including the USD 100 bn of annual climate finance, doubling adaptation finance and ensuring a strong replenishment of the Green Climate Fund,” they said.