The Climate Investment Funds Capital Markets Mechanism (CCMM) has made a significant move this week by announcing a bond listing on the London Stock Exchange. This initiative aims to boost climate finance for Africa, a region that is in need of urgent support to combat the effects of climate change. The CCMM raises private sector capital in the international capital markets to mobilize finance for climate action and sustainable development. This is based on reflows from existing Clean Technology Fund projects that have been implemented by six participating multilateral development banks over the past 16 years.
Akinwumi Adesina, President of the African Development Bank, emphasized the importance of innovative models to secure larger climate finance for developing countries, both in the public and private sectors. He highlighted the significance of the CCMM, which marks the first time that a multilateral climate fund will leverage its balance sheet to unlock much-needed climate finance.
This development comes at a crucial time when concessional financing and grants are declining, making it essential to explore new avenues for funding climate initiatives. The CCMM’s approach to utilizing the strength of its balance sheet to attract investment for climate projects sets a new precedent in the realm of climate finance.
For more information on Africa’s climate finance demands and the global challenges faced at COP29, you can read the full article on Forbes Africa’s website.
This initiative by the CCMM is a step in the right direction towards addressing the pressing climate issues facing Africa and other developing regions. By tapping into the capital markets and leveraging existing projects, the CCMM is paving the way for increased investment in climate action and sustainable development.
