The global technical assistance initiative for climate projects called the Climate Finance Accelerator (CFA) runs through 2023.
Deadline for applications is February 17, 2023.
The UK government funds the Climate Finance Accelerator (CFA). A global program of technical assistance, to directly assist climate projects in obtaining funding. The CFA is a nonprofit organization that works in nine nations. (Nigeria, Colombia, South Africa, Turkey, South Africa, Mexico, Peru, Pakistan, Egypt, and Vietnam) To promote the financial flows necessary to fulfill each nation’s commitment to keeping global warming below 1.5°C.
The CFA in Nigeria brings together the crucial players in the investment chain for climate finance, including project developers, financiers, and policymakers. Our goal is to support a cooperative approach to releasing funding for large-scale climate initiatives. And building a pipeline of low-carbon projects that are “investment ready.” The CFA also aims to deliver a number of co-benefits. Such as assisting COVID-19 recovery efforts that are environmentally friendly. Promoting gender equality, and supporting a just transition through inclusive approaches to sustainable development.
The CFA is a useful and transaction-focused program that aids climate projects in becoming more bankable and appealing to funders. It can be difficult to prepare initiatives that are appealing to investors. Due to the unfamiliarity with new technologies and economic structures, low carbon projects are frequently thought to be riskier. Regulations and regulatory restrictions may also make it difficult to access funds on a large scale.
A variety of capacity-building services are provided by the Climate Finance Accelerator to help climate mitigation projects obtain funding.
Participating in the CFA program offers project developers the following advantages:
- Get to investors: By working closely with potential investors to comprehend their demands and build their projects accordingly, CFA Nigeria gives project developers more options to access money. Project proponents have the chance to connect with national and worldwide commercial and concessional investors thanks to our network.
- CFA Nigeria offers mentoring and best practice insights, as well as access to expert perspective. Project developers will get important insights and build skills in making projects appealing and investment-ready through knowledge sharing workshops on what factors financiers consider when making an investment decision. For instance, we can offer guidance on creating important documents like investor term sheets and marketing presentations.
- Opportunities for networking: Project developers will have the chance to broaden their network among investors and other significant players in the climate financing industry. These include members of the national and municipal governments, banks and organizations dedicated to international and national development, as well as a group of initiatives dealing with comparable difficulties. Project developers will receive long-lasting advantages from present and upcoming low carbon prospects thanks to the network.
- Participating in CFA Nigeria and important events can increase a project’s visibility with a variety of stakeholders, including local and international funding providers as well as regional and national policymakers.
- Reaching low-carbon project goals: CFA Nigeria encourages initiatives to recognize and share their beneficial effects. We can support initiatives to meet local and national climate aspirations and help to unleash co-benefits including poverty reduction, greater gender equality and social inclusion, and addressing biodiversity loss. We have access to climate, sectoral, and social impact expertise.
The kinds of initiatives that CFA Nigeria can fund
CFA Nigeria promotes programs that reduce carbon emissions and seek funding. Suitable projects ought to:
- Be created to deliver measurable climate outcomes in the form of assisted or direct reductions in greenhouse gas emissions;
- A $5 million minimum required in overall financing;
- Possess a concept that has previously been demonstrated, or is at least in the pre-feasibility stage, with clear components of scalability (particularly if under $10m);
- Possess a business plan that, over the long term, will produce economically viable returns (although some initial concessional finance may be required);
- Possess favorable social effects and help advance social inclusion and gender equality.
Until February 17, 2023, CFA Nigeria is accepting submissions from climate projects in need of assistance in obtaining financing.
For Additional Information about The Climate Finance Accelerator (CFA), Click Here