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Canada’s Total Climate Finance Contribution:
$154,000,000 CAD
- 2020 to 2021: $1,500,000 CAD
- 2018 to 2019: $89,000,000 CAD
- 2017 to 2018: $63,500,000 CAD
Targeted Regions:
Funding Period: 2017 to 2018, 2018 to 2019, 2020 to 2021
Financial Instrument:
Concessional Loan
Type of Support:
Mitigation
Delivery Channel:
Description
Canada is contributing $150 million to the Canada-International Finance Corporation (IFC) Renewable Energy Program for Africa as part of Canada’s G7 commitment in support of the African Renewable Energy Initiative, an African-led continental framework, supported by the G7 and other stakeholders to accelerate access to sufficient amounts of clean, appropriate and affordable energy using renewable energy systems. This contribution aims to accelerate and scale up private sector investments in high-impact renewable energy (RE) projects in Sub-Saharan Africa (SSA) as a means of improving access to affordable and sustainable energy services that play an important role in reducing poverty, reducing gender inequality, and tackling climate change.
The program promotes a wide range of RE technologies such as solar, wind, hydro, geothermal and marine, as well as energy transmission, distribution and storage by mitigating various risks that can deter private investment in renewable energy in the region, with a core focus on meeting the needs of the poorest people. To this end, the program also provides $2.5 million in grants for a combination of advisory/technical assistance tools aimed at strengthening the breadth and quality of the investment pipeline of projects and blended finance investment instruments that are designed to support implantation of investment projects.
For more information, please visit Global Affairs Canada's Project Browser: Africa Renewable Energy Initiative (Grant Contribution), Africa Renewable Energy Initiative (Repayable Contribution).
Results/Expected Outcomes
The Program aims to support first mover RE projects that can show to private sector sponsors the market opportunity of clean energy generation in SSA and beyond. These blended concessional finance investments are also expected to help demonstrate the feasibility of RE projects to both local and international financial institutions, which will be critical to help boost financing into Africa’s RE sector. If successful, projects will contribute to enhance energy security, diversify the region’s power mix and reduce electricity price volatility while stimulating the development of local supply chains and creating local green jobs. Projects will also reduce fossil fuel consumption and reduce balance of payment pressure for governments that either import these fuels or rely on subsidized domestic supplies. Through the Canada-IFC Renewable Energy Program for Africa, it is expected that 340,000 metric tons of CO2 will be reduced/avoided annually, and US $350 million of additional investment will be leveraged.