IGREENFIN project and GCF Umbrella Program for the Great Green Wall Initiative
IGREENFIN project and GCF Umbrella Program for the Great Green Wall Initiative
The SAP012 IFAD-Niger project “Inclusive Green Financing for Climate Resilient and Low Emission Smallholder Agriculture” (IGREENFIN), approved during the GCF Board #24 in 2019, will be scaled up and replicated in all African countries of the Great Green Wall (GGW) area and others in the region.
IGREENFIN initiative provides a regional approach to enable a market for investments on adaptation, mitigation practices and climate technologies by removing the financial and technical barriers faced by Local Public Development Banks (LPDBs) particularly agriculturalbanks.Thisinitiativewill supporttheestablishmentofgreenlinesofcreditand the capacity building of both supply (banks) and demand (small holder farmers) and their alignment on the Nationally Determined Contributions (NDCs). The program will be rolled out into two steps :
- IGREENFIN phase 1 will cover Burkina Faso, Mali and Senegal, as well as Cote d’IvoireandGhana. IFADhavestartedtheworkinthosecountriesatthebeginning of 2020, with the selected Local Public Development Banks (LPDBs) and their Central Banks, all potential Executing Entities.
- IGREENFIN phase 2, composed by the remaining GGW countries: Chad, Djibouti, Eritrea, Ethiopia, Mauritania, Nigeria, and Sudan.
In parallel, the GCF, UNCCD and France invited IFAD to lead the elaboration and implementation of the first programmatic approach of the GCF, aiming at enhancing the efficiency and impact of the GCF projects and programs designed to support the GGW Objectives. This GCF GGW Umbrella Program (GCF GGW UP) will be focused on climate change adaptation and mitigation actions, and on GCF projects and programs. It will be a sub-set of the broader GGW Accelerator under elaboration, which will go beyond climate change mitigation and adaptation, and GCF funded projects and programs. It aims at mobilizing US$ 10 billion (2020-2025), and improving donor coordination, reducing fragmentation of the international technical and financial support provided to GGW countries, and fostering the active engagement of the private sector.
This PPF application is to ensure an effective and quality design of this regional approach of IGREENFIN and the programmatic approach of the GGW while leveraging further investments from public, private, national, regional and international entities toward the
GGW objectives and will foster the paradigm shift needed in the Sahel. The financial resources request will be used adequately to finalize/develop and submit:
- a Funding Proposal for IGREENFIN phase 1 (Burkina Faso, Cote D’Ivoire, Ghana, Mali and Senegal), tentatively for the GCF Board#30 in November 2021
- a Funding Proposal for IGREENFIN phase 2 (Chad, Djibouti, Eritrea, Ethiopia, Mauritania, Nigeria and Sudan), tentatively for the GCF Board #31 of June 2022.
- the GCF GGW Umbrella Program, which shall be ready around April 2021 and therefore submitted to the GCF Board #30 with the FP of IGREENFIN Phase 1.
This PPF application is hereby made to the GCF to provide USD 1,497,753 of PPF resources to complement the USD 1,457,300 from IFAD and support the Project Preparation activities, ensure a well-designed IGREENFIN FP proposals (phases 1 and 2) and a robust GCF GGW UP which will leverage further investments from public, private, national, regional and international entities toward the GGW objectives and will foster the paradigm shift needed in the Sahel.