THE African Development Bank (AfDB) is moving away from financing fossil fuels, with renewables already making up 87 percent of the lender’s investments.
Under the new policy, the AfDB will no longer finance coal mining or coal-fired power plants, except in rare circumstances. Instead, the bank will prioritize financing for renewable energy projects, including solar, wind, hydropower, and geothermal. The AfDB will also support energy efficiency measures and sustainable transport systems, such as electric buses and railways.
“Our primary focus is on renewable energy at scale,” Dr Akinwumi Adesina, the AfDB’s president, said in an interview in Zimbabwe’s capital, Harare.
The bank has mainly been investing in solar, geothermal, wind and hydro projects, he said.
That’s a departure from Adesina’s past defense of what he called the continent’s fundamental right to utilize natural gas.
Africa’s biggest multilateral lender is driving the “Desert to Power” initiative, which seeks to install 10,000 megawatts of solar generation capacity across 11 countries in the Sahel region, according to Adesina. Upon completion, it should provide electricity to 250 million people by 2030.
