Bridging Financial Powerhouses
Nairobi, Kenya – The Glasgow Financial Alliance for Net Zero (GFANZ), the world’s most extensive coalition of financial institutions dedicated to achieving net-zero emissions by 2050, has unveiled an exciting partnership with the African Development Bank.
This groundbreaking collaboration solidified with a Letter of Intent signed on the fringes of the Africa Climate Summit in Nairobi, signifies a significant stride in supporting climate action by financial entities throughout Africa.
Catalyzing Climate Finance
GFANZ and the African Development Bank are poised to work together through the GFANZ Africa Network and the African Financial Alliance on Climate Change (AFAC). Their collective goal is to bolster the African financial sector’s ability to expedite climate finance for low-carbon investments across the region.
AFAC will play a pivotal role in establishing working groups to enhance climate data accessibility, climate risk analysis, disclosure practices, climate target-setting, and the capacity for transition planning and financing.
GFANZ Africa and AFAC will be actively engaged in sharing tools, resources, and joint initiatives with the financial sector. They will also collaborate with key partners, including UNEP-FI, the Global Centre for Adaptation, and FSD Africa, to magnify their impact.
Leadership and Representation
In a notable aspect of this partnership, Dr. Timothy Afful-Koomson, Chief Climate Finance Officer of the African Development Bank, will assume the role of Director of the GFANZ Africa Network. He will work closely with Dr. Mahmoud Mohieldin, Chair of the GFANZ Africa Network Advisory Board, to steer the progress of GFANZ Africa and execute the Africa Board’s priorities.
The partnership also ensures cross-board representation, with Solomon Quaynor, African Development Bank Vice President for the Private Sector, Infrastructure, and Industrialization, becoming a member of the GFANZ Africa Board. The GFANZ Africa Board will also have a representative on AFAC’s Steering Committee.
Nurturing a Just Transition
This partnership builds upon the launch of the GFANZ Africa Network in September 2022, which focuses on facilitating investments in African countries’ just transitions.
It does so by generating momentum around transition finance, showcasing African-led climate initiatives, and equipping African financial institutions with the tools and guidance required to capitalize on the shift towards net-zero finance and economies.
Commitment to a Sustainable Future
Dr. Akinwumi A. Adesina, President of the African Development Bank Group, expressed his enthusiasm, stating,
“African financial institutions have a critical role to play in the global transition. I am delighted to partner with GFANZ to support a just transition in the region. Close collaboration and mutual knowledge sharing is essential for ensuring that finance flows at the scale and pace needed.”
Unlocking Climate Finance
Solomon Quaynor, Vice President for Private Sector, Infrastructure, and Industrialization at the African Development Bank, added,
“The agreement we have signed will help to ensure that the African Financial Sector, across all stakeholders and participants, raise their awareness and understanding of climate risks and opportunities, as well as disclosure standards, and are able to access the blended finance available to finance the transition.”
Global Environmental Advocacy
Prominent environmental advocates also hailed the partnership. Michael R. Bloomberg, GFANZ Co-Chair and UN Special Envoy for Climate Ambition and Solutions, emphasized the potential for sustainable growth across Africa, saying,
“This partnership with the African Development Bank will help more African financial institutions support the expansion of clean energy and create more sustainable growth across the continent.”
Mark Carney, GFANZ Co-Chair and UN Special Envoy for Climate Action and Finance echoed the sentiment, asserting,
“The GFANZ Africa Network’s partnership with the African Development Bank is a strong signal of the growing momentum behind climate finance in Africa.”
“As the world moves toward a net-zero global economy, it is essential that we support financial institutions in the region to seize the opportunities of the transition while also supporting the sustainable development of African economies.”
A Collaborative Vision
Mary Schapiro, GFANZ Vice Chair and Head of Secretariat for GFANZ and the Task Force on Climate-related Financial Disclosures underlined the importance of regional engagement, saying,
“This partnership will help to ensure that GFANZ’s guidance reflects regional contexts, opportunities, and challenges – and we look forward to deepening our collaboration with the AfDB to leverage our collective expertise and resources to drive meaningful progress towards net zero.”
Dr. Mahmoud Mohieldin, Chair of the GFANZ Africa Network Advisory Board and UN Climate Change High-Level Champion for Egypt, lauded the potential for change, noting,
“This partnership speaks to the importance of engaging with financial institutions from across the continent to be part of that transition.”
Dr. Timothy Afful-Koomson, Chief Climate Finance Officer of AfDB Group and Director of the GFANZ Africa Network, emphasized the urgency of their work, stating,
“The work that the African Development Bank and GFANZ can achieve together is urgently needed to mutually reinforce the respective outcomes from our initiatives for transformative impacts towards transition finance in the African financial industry.”