Green Economy & Carbon Market Growth Crucial for Africa's Development

The African Carbon Asset Development Facility (ACAD) announced at the second African Bankers' Carbon Finance and Investment Forum on 4 November 2010 in Johannesburg that it would be supporting seven climate protection projects. At the first Forum, fundraising activities for Africa's green economy were initiated.

The 2010 Forum was organised by ACAD in association with the UNEP Finance Initiative (UNEP FI) and the Development Bank of Southern Africa (DBSA). ACAD and UNEP FI aim to help African financial institutions understand why and how they might get involved in the booming carbon market. The event, which was co-sponsored by the German Federal Ministry of the Environment, Nature Conservation and Nuclear Safety (BMU), the European Commission and the World Bank, among other organisations, informed African bankers about opportunities in carbon finance, thereby promoting investment in green development projects in Africa.

The Forum highlighted the need for public-private partnerships that develop skills and knowledge, take better advantage of opportunities and unlock the immense potential of Africa's green economy as a growth driver. 

'ACAD's strategy relies on deepening UNEP's engagement with local financial institutions to jointly develop local capacity, industries and markets. Through our seed funding and outreach activities, such as this Forum, we seek to empower Africa's green entrepreneurs struggling to access the early-stage finance and technical support they need to succeed,' said Glenn Hodes, Senior Energy Economist at the UNEP Risoe Centre (URC), which manages UNEP's activities related to carbon finance and the Clean Development Mechanism (CDM) and has a pivotal role in facilitating the participation of developing countries in the emerging carbon market.

ACAD is a public-private partnership between BMU, UNEP and Standard Bank funded by Germany's International Climate Initiative (ICI). It aims to stimulate the growth of Africa's carbon market through investor outreach and seed capital.