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Background to CFA
The Climate Finance Accelerator (CFA) is an innovative international initiative supported by the UK Government and other international donors. Its aim is to accelerate the transformation of Nationally Determined Contributions (NDCs) into Climate Investment Plans supported by pipelines of bankable projects needed to attract investment at scale from the private sector.
The inaugural Climate Finance Accelerator
Nigeria took part in the inaugural CFA process in 2017, which has significantly increased dialogue between its public and private sector actors, and improved its understanding of how to identify ‘bankable’ projects. A portfolio of 15 projects in the area of renewable energy and climate-smart agriculture was reviewed by a small team of Nigerian experts, supported by Ricardo Energy & Environment in discussions with experts from Deutsche Bank and Deutsche Asset Management.
Opening remarks from the Nigerian delegation at the London Stock Exchange
The current initiative builds on Nigerian participation in the 2017 CFA in London and aims to embed the CFA approach within Nigerian plans for implementation and financing of its NDC. Key follow-ups for Nigeria from the 2017 CFA were to develop a full NDC financing plan, convene a private sector forum to socialise the NDC and the outcomes of the CFA, develop additional financing propositions for its NDC projects and replicate the CFA approach locally. This project seeks to address these follow-ups. It will assist relevant Ministries, Departments and Agencies (MDAs) to:
- Develop further the pipeline of projects needed to deliver its NDC;
- Enhance local capacity to access green finance in both public and private sectors; and
- Support the development and documentation of a full NDC financing plan.
Nigeria will become the first country to have a dedicated in-country CFA initiative. This was announced by Prime Minister Theresa May during her visit to Nigeria in August and is supported by the UK Government and private donor funding. Over the coming months, we will engage with private sector companies interested in undertaking ambitious low carbon development projects, thus creating a mature pipeline of bankable projects contributing to Nigeria´s NDC, and strengthening the climate finance capacities of public and private sector institutions. This will culminate in a 4-day CFA workshop in Lagos in early 2019.
Wide variety of partners
CFA is an innovative partnership between British and Nigerian experts and organisations. At its core is a team of experienced climate change, project development and finance experts, who work closely with the respective government ministries and private sector organisations.
NDCi.global is the originator of the CFA concept. It is an online-based platform working to build a community of professionals concerned with the financing and implementation of the Paris agreement, including through capacity-building initiatives focussed on promoting transaction activity.
On climate finance, Ricardo Energy & Environment provides expertise to governments, donors, development banks and international institutions in: climate investment planning and financing NDC implementation; capacity building and strengthening national institutions to access climate finance; identifying where public finance is best placed to leverage private sector funds and tracking and evaluating climate finance flows.
In Nigeria, the Department of Climate Change of the Federal Ministry of Environment in its role as Focal Point coordinates engagement with the CFA project with NIRSAL, the Federal Ministry of Power, Works and Housing, the Federal Ministry of Finance, and many others.
The Nigeria Economic Summit Group through its Sustainability policy commission opens the door to many companies and projects. In 2017, NESG played a key role in coordinating the project submissions for the inaugural CFA process.
What we are looking for?
Projects will be selected so as to provide strong co-benefits, such as jobs and social inclusion, a healthier and safer environment, and to increase investment into new markets and technologies, for example in renewable energy and climate-smart agriculture.
The criteria for project selection are set out in the CFP Briefing Note that you can find below. Broadly speaking, we are looking for projects which can help Nigeria achieve the ambition shown in its NDC. The projects should produce measurable climate outcomes (emission reductions, adaptation and climate resilience) and require significant levels of investment (over USD 15 million for projects and USD 50 million equivalent for funds). Applicants should review Nigeria’s NDC for strategies and measures which are particularly attractive for the CFA, with particular reference to section 4.
CFP Briefing Note
Outline Business Case Template NOTE: This is the document you should submit by the deadline below
Deadline: Midnight Nigeria time, Wednesday 7 November 2018
Email for Submissions:CFA.Nigeria@climateadvisers.net