Nordic Development Fund (NDF) Approves Grant to Boost Green Bonds in Africa

In April 2023, NDF approved a booster grant of EUR 500,000 to help the Green and Resilience Debt Platform’s design phase in order to solve climate financing shortages in Africa. Through green bonds, the new project hopes to increase access to climate funding.

Green bonds continue to have promise in filling the funding gaps for addressing global climate change. However, just 5.8% of all bonds issued globally in 2021 were green bonds, and only 0.077% of those bonds were issued in Africa.Climate change has already had a significant impact on Africa, especially Sub-Saharan Africa, and funding shortfalls must be immediately closed. The issuing and investment in green bonds in least developed countries (LDCs) is supported by international development finance institutions and organizations, which is essential for addressing the financing gaps for the green economy. This includes investing as cornerstone or junior investors in both sovereign and corporate green bonds, as well as offering technical help.

In order to increase the use of green bonds, NDF is working with African nations to develop and launch a Green and Resilience Debt Platform for Africa and LDCs in partnership with UNDP, UNCDF, the European Investment Bank (EIB), Green Climate Fund (GCF), and the European Union’s Global Green Bond Initiative (GGBI).

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