Call summary :

Recognizing climate change as a major threat to Africa, the African Development Fund’s Sixteenth Replenishment (ADF-16) established a Climate Action Window (CAW) for Africa’s 37 least developed countries. CAW, with an initial commitment of approximately US$ 429 million, aims to boost adaptation actions and expects to increase funding through contributions from various actors. The funding is primarily allocated to adaptation (75%), with the remainder for mitigation (15%) and technical assistance (10%).

The Mitigation Sub-Window Call for Proposals

The focus of this Second Call for Proposals under the CAW is the Mitigation Sub-Window. The CAW will launch a subsequent call focused on Technical Assistance this year.

Priority Sectors

The priority sectors for the mitigation sub-window of the Climate Action Window (CAW) include agriculture, forestry, land use, and fisheries; water access and wastewater management; energy access and renewable energy; transport and infrastructure; and green and sustainable finance.
Cross-cutting Themes

The priority cross-cutting themes are Paris alignment; gender, youth, and social inclusion; biodiversity and nature-based solutions; enhancing climate governance; green public finance; and skills and capacity building.

Eligible Beneficiaries

(i) Governments and government entities of ADF countries (see above for the list of ADF countries) (ii) African Development Bank departments: Bank departments may submit proposals directly or may work with eligible external beneficiaries to support them in preparing high quality project concept notes. (iii) Regional or sub-regional intergovernmental bodies, including climate centers, river basin organizations, economic communities. (iv) Non-sovereign entities (such as Non-Governmental Organizations, Community Based Organizations, and UN Agencies). Proposals from consortia are allowed if all members of the consortium are eligible beneficiaries.

Grant Amount/Funding Envelope:
For this mitigation call, the Climate Action Window will allocate approximately US$ 64 million. The funding is in the form of grants. Funding requested for a single project or programme may range between US$ 3 million to 5 million. In exceptional cases and on recommendation by the Independent Evaluation Panel, funding may be granted above or below these limits.

Selection Criteria:

Eligibility and Screening:
To access funds from the mitigation sub-window of the Climate Action Window (CAW), a project must meet several eligibility criteria that align with the strategic priorities of the host country(ies) and African Development Bank (AfDB). The project must be consistent with the AfDB’s Ten-Year Strategy, the High 5s priority areas, relevant Country Strategy Papers (CSP), Regional Integration Strategy Papers, and the Bank’s Gender Strategy. It should strongly support the objectives of the Bank’s Climate Change and Green Growth Action Plan, contributing significantly to mitigation efforts as outlined in the CAW’s results framework. This includes having defined mitigation result indicators, aligning with national climate policies like Nationally Determined Contributions, and adhering to Common Principles for Climate Change Mitigation Finance Tracking. The project’s greenhouse gas (GHG) emissions impacts must be estimated, with a clear methodology, baseline, and project emission scenarios. Projects that involve innovative approaches such as Research & Development or digital and financial solutions that can potentially transform carbon-neutral initiatives are also eligible. Additionally, there should be explicit budget allocations for proposed mitigation activities, and the project should not duplicate funding available from other sources. Furthermore, the project requires a no-objection letter from relevant national ministries and should ideally have co-financing arrangements that qualify as climate finance. These criteria ensure that the projects funded are impactful, aligned with strategic goals, and supported by the host governments and other financial contributors.

Evaluation:
Once projects are screened and considered eligible, they go through an evaluation. The CAW Secretariat evaluates projects based on their capacity to mitigate climate vulnerability to the project itself, bolster country resilience, and foster innovative low-emission solutions. The evaluation emphasizes the project’s adherence to national climate agenda, the potential for significant climate change mitigation impacts, and the necessity for CAW-specific climate finance. Additionally, projects should demonstrate extensive climate and development co-benefits, prioritize gender equality and youth empowerment, and contribute to biodiversity and ecosystem preservation...