This write-up is funded by African Development Bank
The Climate Investment Funds Capital Markets Mechanism (CCMM) has really launched its bond noting program on theLondon Stock Exchange Announced on the sidelines of COP29, notes a considerable development in a proposal to extend huge surroundings concessional cash from international funding markets for Africa and the creating globe.
Established underneath the Clean Technology Fund (CTF), the CCMM stands for years of collective initiative with contributors of the CTF Governing Body, the World Bank and varied different Multilateral Development Banks (MDBs), whose unwavering help and administration have really contributed in bringing this enthusiastic marketing campaign to life. As the preliminary of its variety, CCMM, will definitely search for to extend financial sector funding within the international funding markets with the aim of setting in movement cash for surroundings exercise and lasting development.
“CCMM will mobilise private capital at scale and direct it to high-impact clean energy and clean technology investments. While this is an ambitious step forward, it is rooted in a 16-year track record of being a first mover, working with national governments, the private sector, and frontline communities to pioneer cutting-edge clean technologies and solutions paving the way for greater ambition,” said Tariye Gbadegesin, CHIEF EXECUTIVE OFFICER of CIF.
The Instrumental Role of African Development Bank
The African Development Bank’s very early participation match CCMM is an affidavit to our dedication to progressing introducing surroundings cash companies. The assertion complies with the present authorization by the African Development Bank’s Board of Directors for the finalizing of the CCMM Financial Procedures Agreement with the International Bank for Reconstruction and Development (IBRD), functioning because the trustee, and the CIF Secretariat, main the way in which means for the African Development Bank to finish up being an Implementing Entity of the CCMM.
Congratulating CIF on the bond issuance, African Development Bank President Akinwumi Adesina talked about: “At a time of declining levels of concessional financing, new models are needed to secure larger climate finance for developing countries.”
“I am pleased with the African Development Bank’s early involvement in the design of CCMM. As the first MDB-led market mechanism centered on issuing bonds for climate action, CCMM has enormous potential to drive impactful concessional finance to climate action across Africa. By establishing a clear path for both private and institutional investors to support clean technologies, CCMM provides an open and scalable channel to accelerate the green revolution that Africa and the world urgently need” he included.
A stable side of CCMM is that it leads the way in which for multilateral surroundings funds to launch their annual report {qualifications} to open shortly required surroundings funds.
“Given the track record of the CTF in leveraging $10 for every dollar invested, this mechanism holds the potential to raise tens of billions of dollars in critically needed climate finance over the next decade and can greatly help leveraging much needed private sector climate financing,” Adesina said.
Multilateral development monetary establishments reveal help
“Success will not be measured solely by the funds we raise, but by the real-world impact those funds have on the ground. Every investment made, every bond issued, every dollar mobilised is a step closer to a sustainable future for all,” said Ajay Banga, President of the World Bank Group.
Fatima Yasmin, Vice-President for Sectors and Themes on the Asian Development Bank, likewise shared optimistic outlook that the bond itemizing would definitely be a online game changer for the Bank’s surroundings cash aspirations.
“The CCMM will address a key ADB priority by bringing together multilateral development banks to mobilise private sector-funded climate action. Supported by a 15-year partnership between ADB and CIF, this initiative will be a game changer in funding transformative projects that support climate action and contribute to regional sustainable development and poverty alleviation,” she said.
