The U.S. Agency for International Development(USAID) is investing $1.4 million to support the Government of Kenya in developing its carbon market activation plan and regulatory and legal framework around carbon to ensure the integrity, transparency, and equity of the market. USAID also officially expanded its Clean Air Catalyst initiative to Nairobi.
The Catalyst is USAID’s flagship effort to reduce air pollution, currently also working in Jakarta, Indonesia, and Indore, India.
USAID will invest $2.9 million to support local government leaders across the three cities to reduce air pollution from leading sources such as transportation and waste burning.
Through Development Innovation Ventures, USAID anticipates investing $1.5 million to scale up access to clean, green, public transport by supporting Kenya’s BasiGo electric bus transport company to expand to Rwanda.
USAID INVESTMENTS FOR AFRICA
The Agency has also announced a suite of investments and initiatives to support climate action in Africa as part of the September 4-6 Africa Climate Summit in Nairobi, Kenya.
Pending the availability of funds, USAID said this includes $35 million in new investments this year.
These activities will support communities across Africa to build their resilience to climate impacts and sustainably grow their economies.
They also support the implementation of the President’s Emergency Plan for Adaptation and Resilience (PREPARE), the Just Energy Transition Partnerships, and global efforts to conserve critical carbon sinks.
The Agency has partnered with Power Africa which will invest $4.8 million to advance activities that respond to South Africa’s Just Energy Partnership investment plan, in partnership with the U.S. African Development Foundation and Departments of Energy, Commerce, and State.
Power Africa will invest $6.3 million in the African Development Bank’s Sustainable Energy Fund for Africa to strengthen access to electricity and $2.7 million in the African Legal Support Facility to provide counsel to clean energy transactions, building on more than a decade of support for each fund.
USAID and Prosper Africa, through the Prosper Africa Catalytic Investment Facility, will invest a combined $1.75 million in two impact investment funds, EG Capital and The Catalyst Fund backed by its parent group BFA Capital. The Funds aim to leverage a combined $140 million to help communities build resilience to climate risks and invest in African high-growth startups and medium-sized businesses across sectors such as food, climate, health and education
While in Tanzania, Deputy Administrator Isobel Coleman announced USAID will invest an initial $8 million to launch Tumaini Kupitia Vitendo (Hope through Action), a five-year partnership with the Jane Goodall Institute to strengthen government, village, and stakeholder management of natural resources in Tanzania.
USAID will invest an initial $2.1 million to improve the climate resilience of coasts and fisheries in Tanzania as part of the ongoing Heshimu Bahari (Respect the Ocean) Activity.
USAID officially launched work to support the C40 Cities Finance Facility (CFF), funding for which was announced in June. USAID’s contribution is helping to increase the CFF’s focus on adaptation, including supporting two South African cities to use nature-based solutions to mitigate flood risk.
USAID, through its Enterprises for Development, Growth, and Empowerment Fund, will invest $2.5 million into Acorn’s Cooperative Carbon Finance Fund as a first loss tranche, thereby unlocking access to the voluntary carbon market for smallholder farmers and helping the fund meet its target of catalyzing $110 million for climate-smart and resilient agriculture. Eighty percent of the proceeds from the fund’s carbon credit sales will go to smallholder farmers.