Africa: Von Der Leyen Announces 1 Billion Green Bonds

Ursula von der Leyen announced the allocation of one billion euros to support Africa in the transition to a green economy.

The President of the European Commission spoke during the African climate summit (September 4-6, Nairobi, Kenya). Von der Leyen explained that climatic issues and the energy transition will require unprecedented investment, both in Europe and in emerging economies, and public funds will not be enough.

“It will be necessary to mobilize private capital on a large scale,” she explained, according to the Italian news agency Agenzia Nova. “In this case, green bonds are widely accepted as part of the solution. That is why we have just presented a new proposal to attract private investment. It’s called the Global Green Bond Initiative. We know that emerging economies can face barriers on their way to capital markets, but we can change that.”

The green bond market, a tool used to finance projects with environmental benefits, is especially strong in Europe, and Brussels will share its experience in developing this practice in Africa, as well as allocate one billion euros to “reduce the risk of private investment in emerging markets.”

The President of the European Commission also spoke about the need to put a price on carbon emissions, “It is an effective tool because it encourages innovation in the private sector and charges a fair price to those who pollute the environment.” The proceeds could then be invested specifically to support the transition to a green economy in developing countries. “Let’s work together and submit a proposal to COP28 to set a global price for carbon emissions,” Von der Leyen explained, according to reports from the Italian news agency ANSA. “If we want to limit global warming to 1.5 degrees Celsius, we must accelerate the global energy transition. This means that by 2030 we need to triple our renewable energy capacity and double our energy efficiency.”