The AfDB Green Bond program facilitates the achievement of the Bank’s corporate priority of green growth through the financing of eligible climate change projects. Investors can make a difference with their investment by financing climate change solutions through AfDB’s Green Bonds. An amount equal to the net proceeds of AfDB’s Green Bonds are initially allocated to a sub-portfolio within the Treasury’s liquidity portfolio. As and when eligible projects begin to disburse, Green Bond proceeds in the liquidity portfolio are then allocated to the loan pools containing the disbursing green projects.
The selection of eligible projects will be done in two phases as follows:
Phase 1: the Energy, Environment and Climate Change Department will identify and categorize among all projects approved in any given fiscal year the climate change projects using the Joint MDB and AfDB’s climate finance tracking methodologies.
Phase 2: the Energy, Environment and Climate Change Department will apply the additional selection criteria under the AfDB’s Green Bonds Program and categorize the projects that can be part of the that program. The final list of projects to be part of the portfolio for any Green Bonds issuance will be agreed upon jointly by the Bank’s Energy, Environment and Climate Change Department and Treasury Department based on the proposed list by the former.