African Development Bank Launches the CAW Facility to Bridge Climate Finance Gap in Vulnerable Regions

The African Development Bank Group (AfDB) has unveiled the Climate Action Window (CAW) Technical Assistance Facility in a move to address the climate finance gap in Africa. The initiative, launched at COP29 in Baku, Azerbaijan, aims to bolster climate project development across 37 low-income African nations.

The Climate Action Window (CAW) Technical Assistance Facility, backed by an initial funding allocation of $56 million, will support the preparation, financing, and implementation of adaptation and mitigation projects aligned with global climate goals, including the Paris Agreement, Nationally Determined Contributions (NDCs), and National Adaptation Plans (NAPs).

The Climate Action Window was established under the African Development Fund’s 16th replenishment cycle to mobilize resources for climate adaptation (75%), mitigation (15%), and technical assistance (10%). The initiative is a collaboration between the AfDB and international partners, including the United Kingdom, the Netherlands, Germany, and Switzerland.

Governments, regional organizations, NGOs, and UN agencies in eligible countries can submit proposals through an online portal until February 5, 2025. Funding awards will range from $260,000 to $1.3 million per project, targeting activities that enhance climate resilience and reduce vulnerability.

The Climate Action Window launch was met with a strong endorsement from the Côte d’Ivoire’s Minister of Environment and Sustainable Development, Assahoré Konan Jacques, who applauded the initiative.

“I would like to thank the African Development Bank and its partners, as these funds will finance the resilience of our people. Specific activities have been identified and targeted, and I call on the African Development Bank to learn from the challenges other funds have faced, ensuring that CAW succeeds where others have struggled.”

Dr. Kevin Kariuki, African Development Bank’s Vice President for Power, Energy, and Climate Change, emphasized the significance of the CAW.

“The CAW provides a veritable channel for countries to meet their global climate commitments. This facility will ensure that projects in Africa’s most climate-vulnerable regions are well positioned to attract significant funding, creating a win-win scenario where countries can achieve climate targets, while advancing sustainable development.”

Read: African Development Bank Seeks Increased Climate Finance for Africa at COP29

The Climate Action Window has already identified 80 adaptation projects valued at $800 million, with 41 projects funded and partnerships established with major climate funds, including the Green Climate Fund (GCF) and the Global Environment Facility (GEF).

Euan Low, Regional Lead for Southern and Eastern Africa at GCF, highlighted the collaborative potential.

“Our partnership with the African Development Bank has proven the efficacy of co-financing. With $800 million in co-financing, we are leveraging $1.6 billion to ensure that Africa’s most vulnerable populations have access to critical adaptation resources.” said Euan Low.