The Bank’s “Carbon Financing Programme (CFP)” supports environmentally-friendly projects in Africa by promoting project-based trading of Certified Emission Reductions (CERs) under the Kyoto Protocol’s Clean Development Mechanism (CDM) as well as by pre-financing receivables from carbon credits earned and traded by African businesses and governments thereby contributing to reductions in carbon emissions and abating consequential climate change.

 

Beneficiaries:

1. African corporates and governments implementing projects that have earned or are likely to earn carbon credits;
2. African banks and financial institutions financing trade in carbon credits and/ or projects that have earned or can earn carbon credits; and
3. NGOs and environmental groups seeking finance to promote projects that have earned or can earn carbon credits.

Financing Instruments:

1. Direct Advances;
2. Guarantees; and
3. Advisory/Brokerage services to assist eligible projects earn carbon credit and trade same in the international market.

Direct Advances goes in support of projects under the CDM; Guarantees may be in form of performance guarantees to entities pre-paying African projects for future carbon credit deliveries. Country Risk Guarantee and Investment Guarantee could also be provided.