Green and Resilient Debt Platform [C148]
The Green and Resilient Debt Platform aims to boost the use of green bonds for Sub-Saharan African and LDCs in partnership with together with UNDP, UNCDF, the European Investment Bank (EIB), Green Climate Fund (GCF) and the European Union’s Global Green Bond Initiative (GGBI). GRDP will create the macroeconomic and institutional framework, as well as act an anchor investor and crowd in private capital, for sovereign and corporate green bonds in seven LDCs/LMICs in Sub-Saharan Africa.
Green and Resilient Debt Platform (GRDP)
Ref. NDF c148
NDF grant: EUR 500,000 Booster Grant
Project Period: April 2023 – January 2024
Implementing Agency: United Nations Development Program (UNDP)
Climate change presents a significant challenge to the livelihoods and resilience in Sub-Saharan Africa (SSA), especially in Least Developed Countries (LDCs). Despite efforts by many countries in the region to address climate change at the national levels through dedicated policies and integration into national development or environment plans or legislation, as defined in National Determined Contributions (NDCs), availability of financing for green and particularly Climate Change Adaptation (CCA) investments has so far been negligible.
The objective of the NDF Booster grant is to support the design, establishment, and capitalization of GRDP to scale up access to affordable climate finance, notably for adaptation in seven LDC and LMIC target counties in SSA, thereby strengthening their resilience to the impacts of climate change. GRDP creates a unique partnership between NDF and UNDP, UNCDF, EIB, GCF and EU’s GGBI.
The specific objective of the proposed NDF Booster grant is to co-finance GRDP in an additional three countries: Angola, Cameroon, and Uganda. This includes carrying out the required assessments and preparatory work for the three countries and to co-develop a $175 million GCF funding proposal for a total of seven target countries for a planned GCF Board approval in June 2024.
One of the key outcomes of GRDP is to strengthen the capacity of domestic financial institutions and systems in order to ‘green’ financial markets in the target countries, not the least through its focus climate adaptation financing and on supporting local currency denominated bonds. The NDF Booster Grant is limited to the preparation activities of GRDP with the objectives of designing, structuring, and launching the financing facility.
GRDP will drive market creation for climate change adaptation, resilience and blue bonds, and catalyze and mobilize private investment at scale for developing countries which is a prerequisite to meet their climate adaptation ambitions and goals. This includes integration of climate risks, impact and opportunities into capital debt markets.
When successfully implemented, GRDP will effectively support the overall paradigm shift towards greener financial sector approaches and policies in the target countries. As part of the project activities, stakeholder consultations will be conducted, and a stakeholder engagement plan will be developed.
NDF provided a EUR 500,000 Booster Grant.
Anu Hassinen, Program Manager (email@example.com)