The Green Climate Fund

Created in 2010, the Green Climate Fund (GCF) is a financial mechanism of the United Nations Framework Convention on Climate Change (UNFCCC). Its aim is to support the efforts of developing countries to meet the challenge of climate change.

When the Paris Agreement was concluded in 2015, the FVC was assigned an important role in implementing the said Agreement and achieving the goal of limiting global warming to below 2 degrees Celsius.

As part of its mandate, BOAD has taken steps that have led to its accreditation by the CVF as a regional direct access entity. This accreditation was materialized by the signing of an Accreditation Framework Agreement (AFA) between BOAD and the Fund on April 03, 2017. The accreditation was renewed in 2023, with the environmental and social categorization of projects upgraded to A/I1.

As an accredited entity, BOAD supports its member states in identifying and preparing their projects (drawing up concept notes, carrying out studies, and preparing the complete financing document). It submits these documents for approval by the Board of Directors of the Funds through their Secretariat, and monitors project implementation with a view to reporting to the Funds.

The Bank has an active portfolio of FVC-approved projects in various sectors that are currently being implemented.

BOAD's strategy for mobilizing Green Climate Fund resources

As part of the mobilization of Green Climate Fund resources, BOAD’s strategy is to support low-carbon, climate-resilient projects with strong environmental and social benefits. To this end, it is committed to :

Strengthen the capacities of key players (sectoral ministries, designated national authorities, private promoters and project developers) in the eight (08) WAEMU countries to identify quality projects to be proposed in line with the commitments made by the States as part of the Nationally Determined Contributions (NDC) on climate change, and the Results Framework of the Green Climate Fund;
Develop a framework for multi-stakeholder dialogue and synergy between the private sector, the public sector and research centers to design projects that respond to the paradigm shift in the fight against climate change;
Promote and support the scaling-up of projects that have demonstrated satisfactory results, and support the dissemination of lessons learned in the eight (08) WAEMU countries.

FP138 : ASER solar rural electrification project in Senegal

The ASER solar rural electrification project in Senegal aims to bring rural electrification to 1,000 localities. by isolated solar photovoltaic systems, with capacity-building for key stakeholders to foster a sustainable enabling environment for the services and benefits provided by solar mini-grids, as well as support for access to financial services to promote the productive use of energy.

The beneficiaries will be the 38,917 rural households in 1,000 villages to be electrified (ultimate capacity of the solar photovoltaic mini-grids: 32 MW) and 3,739 productive energy users, notably women’s and youth groups.

The total cost of the project is 198.7 M EUR (130,334 M FCFA). It is 38% financed by the FVC for an amount of 75.445 M EUR (49,488 M FCFA). The remainder of the financing is provided by BOAD, KfW-IPEX and the Senegalese government.

FP105 Programme de Promotion des Investissements Privés dans le Secteur des Energies Solaires (PPIPS) in West Africa

The Programme de Promotion des Investissements Privés dans le Secteur des Energies Solaires (PPIPS) in West Africa aims to overcome the financial and technical obstacles to investment in the solar energy sector in the Least Developed Countries (« LDCs ») in the UEMOA zone, notably Benin, Burkina Faso, Guinea-Bissau, Mali, Niger and Togo.

Implementation of the program will benefit around 2.9 million people in these six (6) countries, and help avoid greenhouse gas emissions estimated at 4.8 million tonnes of CO2 equivalent. The total cost of the program is 250 M EUR (164,958 M FCFA). It is 50% financed by the FVC, i.e. 61 M EUR (40,013 M FCFA), made up of 57 M EUR (37,390 M FCFA) in the form of a concessional loan and 4 M EUR (2,624 M FCFA) in the form of a grant. BOAD will provide co-financing of EUR 61 million to complete the financing, with local financial institutions and the private sector contributing EUR 128 million (FCFA 83,963 million).

FP102 Solar Rural Electrification Project (PERS) in Mali

The Solar Rural Electrification Project (PERS) in Mali aims to electrify 70 rural communities using isolated solar photovoltaic systems, build the capacity of those involved in rural electrification to accelerate solar-based electrification, and support access to financial services for productive energy users.

Its implementation will benefit approximately 311,000 inhabitants in rural areas of six (06) regions of Mali (Kayes, Koulikoro, Sikasso, Ségou, Mopti and Timbuktu) and will contribute to avoided greenhouse gas emissions estimated at 1.03 million metric tons of CO2. The total cost of the project is EUR 46.2 million (FCFA 30,305 million). It is financed by the FVC to the tune of 35.34 M EUR (23,182 M FCFA), of which 25.95 M EUR (17,022 M FCFA) for a first tranche, 24.3 M EUR (15,940 M FCFA) in the form of a concessional loan and a grant of 1.65 M EUR (1,082 M FCFA). BOAD is visualized for a total co-financing of 10.63 M EUR (6,973 M FCFA), of which 8.3 M EUR (54,44 M FCFA) for tranche 1.

Mr Honoré D. TOE

Vice President, Environment and Climate Finance

FEM -BOAD Focal Point

dtoe@boad.org

Eric AMOUSSOU

Senior Environmentalist

Deputy Focal Point FVC-BOAD

eamoussou@boad.org