This archive report was first published on 3 November 2021.
On November 3, 2021, at COP26 in Glasgow, Nick O'Donohoe, Chief Executive of CDC Group, announced the institution's commitment to invest over £3 billion (Ksh456 billion) to support emerging economies in Africa and Asia combat the climate emergency.
This commitment makes CDC Group one of the world's largest climate finance investors in Africa and select South Asian markets. The announcement aligns with the 'Clean Green Initiative' announced by the Prime Minister to help developing countries take advantage of green technology and grow their economies sustainably.
The £3 billion of climate finance from CDC Group will be invested over the next five years across various sectors, including renewable power, infrastructure, and agriculture, including forestry. The funds will be deployed to support emerging economies to meet their Paris Agreement goals and adapt to the impacts of the climate emergency.
CDC Group expects power generated from its rapidly expanding portfolio of renewable power investments to double in size over the next five years. The proportion of electricity generated by renewables across CDC's entire energy portfolio will grow from 32 percent to about 70 percent over the same period.
The institution will also increase venture capital investment in early-stage, technology-based businesses that have the potential to play vital roles in the fight against climate change. This will be supported by the £200 million Climate Innovation Facility announced by the UK Government at COP26.
The new fund will provide finance for the most pioneering climate solutions in developing countries. By testing and scaling the most effective solutions, CDC Group aims to seed new markets for investment. The first beneficiary of the new fund is Pula, a Kenya-based agritech business, which will pilot a new 'Pay-at-Harvest' insurance product.
'The financial commitment announced today will mean that CDC Group will become a global leader in climate finance in Africa and South Asia,' said Nick O'Donohoe, Chief Executive of CDC Group. 'COP is about making specific commitments to act, and this is demonstrated by a doubling of our financial support to those countries most vulnerable to the ravages of the climate emergency.'
Over the period 2017 to 2020, CDC Group invested over US $1 billion in climate finance across Africa and South Asia. The institution's portfolio of over 1000 investments will be net-zero by 2050 at the latest.
