Net zero banking alliance launches Africa network

The Glasgow Financial Alliance for Net Zero (GFANZ), a group of financial institutions working to accelerate the global transition to net zero emissions, has formed an African network to boost energy transition finance on the continent.

The network's office will be at the UN Environment Programme (Unep) headquarters in Nairobi, Kenya. GFANZ plans to develop country chapters with offices across the continent.

The network will work with African banks, asset owners and managers and other financial institutions across the continent to scale up climate finance and investment in transition opportunities. African countries are disproportionately more at risk to the effects of climate change, despite contributing a very small share of global greenhouse gas emissions. Just 2pc of global investment in renewable energy in the past two decades have been made in Africa, GFANZ said, referring to data from the International Renewable Energy Agency (Irena).

The network's advisory board will be chaired by Mahmoud Mohieldin, the UN climate champion for the organisation's Cop 27 climate summit, scheduled for November in Sharm El-Sheikh, Egypt.

Mohieldin has been clear that finance will be a key topic at Cop 27, as will adaptation, particularly for countries most vulnerable to the effects of climate change.

"Private capital and financing is the key to unlocking Africa's potential for climate-smart, low-carbon growth and development," Unep executive director Inger Andersen said.

GFANZ launched an Asia-Pacific network in June and plans to establish a Latin America network soon.

By Georgia Gratton