GCF gives $240m to climate-resilient infrastructure

The Green Climate Fund (GCF) has made a commitment of $240 million to the Infrastructure Climate Resilient Funds (ICRF), a facility launched by the Africa Finance Corporation (AFC) to finance climate-resilient infrastructure in Africa.

The GCF Board of Directors’ 35th meeting concluded with the announcement of the investment, making it the first commitment by the GCF to a large-scale multi-country program. The ICRF has set a goal of $750 million in capitalisation for financing climate-resilient infrastructure, and the fund, managed by AFC Capital Partners, will support the incremental cost of integrating climate adaptation and resilience measures into climate protection infrastructure.

The GCF’s investment is accompanied by a grant of $13.7 million, making it the first financial institution to accompany the establishment of the ICRF. The investment is expected to mobilise African pension funds, sovereign wealth funds, and insurance companies to invest in climate-resilient infrastructure as a new asset class in Africa.

The ICRF aims to attract institutional investors, including African pension funds, sovereign wealth funds, and insurance companies over the next few years. The funds raised will finance new and existing infrastructure planned, designed, built, and operated to anticipate, prepare for, and adapt to the changing climate conditions on the continent. The ICRF will make these investments alongside the AFC.