41 c. Pursue a continuous, year-on-year increase in the volume of internal green growth spending in each sector, from the 2020 baseline. u ii. To mobilize greater volumes of external climate finance from all sources, the Bank will: a. Continue to actively seek opportunities where it can leverage other sources of finance. It will do so by leveraging its position as the leading financial institution in Africa and its fiduciary controls, institutional strength, and technical capabilities. The aspiration will be to pursue a continuous year-on-year increase in the volume of multilateral and bilateral climate change finance mobilized from the 2020 baseline. Efforts will continue to target opportunities to grow receipts of bilateral climate finance from strategic sources into funds, such as the African Development Bank-Canada Facility and the Africa Climate Change Fund (ACCF). Further to that, the Bank will pursue opportunities to establish new relationships with non-traditional development partners. These will include impact investors, foundations, and African and other emerging market-based institutional investors with a focus on environmental, social, and corporate governance and climaterelated investing. b. Build on its considerable experience in preparing the ground for private sector investments through its blended finance instruments and use of risk mitigation and credit enhancing facilities, including green bonds. This is to pursue a progressive increase in the volume of private sector climate finance, mobilized from the 2020 baseline (noting that the rate of increase will reflect the realities of Africa’s environment). Resources will be deployed to secure a measurable increase in private sector co-finance for climate change action, through the AFAC. Efforts will also be made to increase private sector involvement in the Adaptation Benefits Mechanism and the AAAP to mobilize financing at scale for climate adaptation in Africa. c. Aim to increase co-investment by partners in climate change-related projects, while improving coordination with other multilateral development banks to avoid and eliminate duplication of resources to African countries. Similarly, the Bank will increase coordination at the country level with bilateral funding operations to avoid overlaps. This will allow for better resource mobilization planning. The Bank will pursue a target to double, over ten years, the number of defined partnerships with signed commitments to co-investing in climate changerelated projects. d. Support African countries’ efforts to access existing and new sources of climate finance, for example by sharing knowledge and best practices related to resource mobilization. e. Leverage and complement new and existing platforms and tools aimed at putting climate finance at the centre of climate action in Africa and supporting key stakeholders in the evolving global climate finance architecture, to help design solutions and mobilize private capital for climate action (such as targeted guaranteed and risk mitigation products for certain risks). Efforts will be directed to fostering dialogue and sharing knowledge as well as to developing new climate risk-mitigating financial instruments, as currently being done through the AFAC. u iii. To catalyse greater levels of financial resources for climate change and green growth, from market and non-market mechanisms, the Bank will: a. Pilot the Internationally Transferred Mitigation Outcomes (ITMOs) instruments and other market-based instruments developed under the Paris Agreement. b. Scale-up and widely implement the Adaptation Benefits Mechanisms, green banks, and national climate change funds. Investment portfolio and pipelines Mobilizing climate finance and setting targets for its allocation are insufficient, by themselves, to translate commitments into tangible results. Change on the ground requires viable, effective, and impactful projects that can deliver the outputs and catalyse the outcomes needed on climate change. To this end, the African Development Bank must play a more decisive role in strengthening the available investment pipeline on the continent (by improving the availability of more bankable projects). It must shape its portfolio of climate-related investments to better reflect the areas where it can drive the greatest change and meet the greatest needs. The Bank already manifests this through its emphasis on adaptation, which is the priority for most African countries. In 2019, the African Development Bank approved $2,016 million in climate change adaptation finance, and $1,584 million in climate change mitigation finance. The Bank also manifests this through its support to under-resourced public sector recipients, who continue to drive development on the continent. Within its spending portfolio for 2019, $2,403 million was Climate change —core to the African Development Bank’s strategy
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