This write-up is funded by African Development Bank
The Climate Investment Funds Capital Markets Mechanism (CCMM) has actually released its bond noting program on theLondon Stock Exchange Announced on the sidelines of COP29, notes a substantial progression in a proposal to increase massive environment concessional money from global funding markets for Africa and the creating globe.
Established under the Clean Technology Fund (CTF), the CCMM stands for years of collective initiative with participants of the CTF Governing Body, the World Bank and various other Multilateral Development Banks (MDBs), whose unwavering assistance and management have actually contributed in bringing this enthusiastic campaign to life. As the initial of its kind, CCMM, will certainly look for to increase economic sector funding in the global funding markets with the purpose of setting in motion money for environment activity and lasting advancement.
“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,” stated Tariye Gbadegesin, CHIEF EXECUTIVE OFFICER of CIF.
The Instrumental Role of African Development Bank
The African Development Bank’s very early participation fit CCMM is a testimony to our dedication to progressing introducing environment money services. The statement complies with the current 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 as the trustee, and the CIF Secretariat, leading the way means for the African Development Bank to end up being an Implementing Entity of the CCMM.
Congratulating CIF on the bond issuance, African Development Bank President Akinwumi Adesina mentioned: “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 solid facet of CCMM is that it leads the way for multilateral environment funds to release their annual report qualifications to open quickly required environment 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 stated.
Multilateral advancement financial institutions reveal assistance
“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,” stated Ajay Banga, President of the World Bank Group.
Fatima Yasmin, Vice-President for Sectors and Themes at the Asian Development Bank, likewise shared positive outlook that the bond listing would certainly be a video game changer for the Bank’s environment money 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 stated.
