(Ecofin Agency) - Last February, experts from the United Nations Economic Commission for Africa advised African countries to look into new green financing methods to support a green transition and help lessen the impact of climate change.

Côte d'Ivoire announced the launch of a $500 million green fund to support its environmental goals, part of a broader effort to boost green financing. The country made this public during the ongoing COP29 conference in Baku, where climate action and funding are top priorities, especially for African nations working to meet their Nationally Determined Contributions (NDCs) and address climate change.

The fund, created through partnerships with the African Development Bank (AfDB), the Climate Investment Funds (CIF), and the National Investment Bank (BNI), aims to attract both public and private investment. The goal is to fund green projects, cut carbon emissions, strengthen climate resilience, and encourage a green economy. While the fund is a significant step forward, it still falls short of Côte d'Ivoire’s financial needs. To meet its NDC targets, the country needs around $4 billion each year through 2030, totaling $22 billion.

Climate Policy Initiative estimates indicate that Africa will need $2.8 trillion between 2020 and 2030 to manage climate change. However, only $300 billion, or just over 10% of the required funds, has been mobilized so far. Although climate financing has gradually increased, reaching $22.5 billion in 2020, a major funding gap remains.

To bridge this gap, Côte d'Ivoire is ramping up efforts on multiple fronts. The country has set up a climate governance framework, establishing the National Commission on Climate Change and adopting a climate law. Moreover, the Resilience and Sustainability Facility (RSF) with the IMF, backed by $1.3 billion, supports climate reforms and encourages private sector participation in green financing. Côte d'Ivoire is also exploring new financial tools, such as green bonds, in collaboration with the European Union, and is developing a guarantee program to reduce risks for private investments in climate projects.

Further initiatives include support for sustainable agroforestry and ecosystem restoration, with help from the Global Environment Facility (GEF). These projects aim to promote ecosystem sustainability while offering economic benefits to local communities. Despite this progress, both Côte d'Ivoire and Africa at large need to increase their efforts to mobilize green financing to achieve lasting climate goals.