Catalyzing private financing for climate impact in Africa
As of: September 2021
In 2017, as part of the G20 presidency, Germany initiated the Compact with Africa (CwA) initiative to sustainably promote Africa's economic potential. With the CwA facility, the BMU is making a climate policy contribution to the CwA initiative: The local green economy of the CwA countries is sustainably strengthened and thus a contribution to accelerating low-carbon development efforts. For this purpose, blended finance approaches are being developed to mobilize private and public climate-friendly investments, e.g. in energy, automotive, industrial production and tourism, in selected CwA countries. With the development of blended finance instruments, the risks for private investors are reduced and the mobilization of private capital increased. The project thus contributes to the redirection of financial flows in accordance with Art. 2.1c of the Paris Agreement and the mobilization of the private sector, which was agreed in 2009 in the Copenhagen Accord.