All African countries are signatories to the Paris Agreement and most have submitted their Nationally Determined Contributions (NDCs), but the financing gap in climate mitigation -and particularly adaptation -in Africa remains large. Development banks play a key role in the transition towards a low carbon and climate resilient future. To navigate their approach and positioning, development banks need a climate finance strategy.
the support of Momentus (formerly IFCL) in partnership with the Frankfurt School of Finance and Management, an African DFI is establishing an ambitious and realistic climate strategy for raising and deploying green capital. The project is aligned to the bank’s robust Environmental and Social Management System (ESMS) and Sustainability Framework.
We developed a climate finance taxonomy based on international standards for climate mitigation and adaptation that provides clear eligibility criteria to help qualify green projects and investments. We also provided tools, guidelines, and templates for integrating climate risks into the Bank’s processes in line with international standards and frameworks such as the Task Force on Climate Related Financial Disclosures (TCFD).
We conducted a comprehensive screening of the Bank’s pipeline and portfolio to assess green content by sector, by country, and by product in relation to the overall loan portfolio. To ensure climate finance awareness and expertise was absorbed by the Bank, we facilitated capacity building and knowledge transfer through training.
The training and workshops we developed addressed key functions such as deal origination and lending operations, portfolio management, environmental and social (E&S) impact management, impact measurement and reporting, and communications and public relations. We also prepared an awareness and promotion campaign targeting external stakeholders to mobilize a new deal flow.