The international community reached a number of important milestones at the 28th Conference of the Parties to the UNFCCC (COP28) in Dubai, United Arab Emirates from November 30 to December 12, 2023. From the establishment of a loss and damage fund for the most vulnerable communities to the adoption of the first global stocktake—including a clear call to transition away from fossil fuels—world leaders underscored their shared commitment to limit warming to 1.5°C.
At COP28, USAID showcased its commitment to combat the climate crisis by galvanizing international partners and the private sector to build climate resilience, support clean energy transitions, conserve critical ecosystems, and foster green cities.
Mobilizing the Private Sector and Strengthening Green Investments
At COP28, USAID highlighted its work with the private sector and green investments to support adaptation, renewable energy projects, green housing and infrastructure, and climate-resilient agriculture.
The President's Emergency Plan for Adaptation and Resilience (PREPARE) Call to Action to the Private Sector has tripled from its ten founding companies to a total of 31 companies and partners. Adding these new partners is expected to help mobilize $2.3 billion for climate adaptation globally. [Please watch Administrator Power at COP28 - PREPARE Call to Action or read Administrator Samantha Power And Special Envoy Kerry Announce New USAID, Private Sector Commitments to Mobilize Finance for Climate Adaptation Under PREPARE.]
The U.S. Government, including USAID and the U.S. presidential initiative Prosper Africa, is investing in a public-private partnership to create the Green Guarantee Company (GGC), the first privately run guarantee company devoted to catalyzing green bonds and loans in partner countries, focusing on Africa, Asia, and Latin America. The GGC will unlock an estimated $1 billion in new private capital for climate finance by 2024. [Please watch Administrator Power at COP28 - Mobilizing and Localizing Climate Finance or read The U.S. Government Joins Public-Private Partnership to Create New Billion-Dollar Guarantee Company to Tackle Global Climate Crisis.]
USAID and the U.S. Department of State partnered to launch the Blended Finance for the Energy Transition (BFET) program by issuing an initial request for concept proposals for private sector-led blended finance structures. With catalytic co-funding from the U.S. Government and other partners, the goal of BFET is to mobilize $1 billion of capital to advance emerging markets’ energy transition efforts and help limit global average temperature rise to 1.5°C. [Please watch Catalyzing Investment through “Blended Finance for the Energy Transition (BFET)” or read The U.S. Department of State and the United States Agency for International Development (USAID) Launch a Call for Concept Proposals for the Blended Finance for the Energy Transition Program.]
USAID unveiled the Comprehensive Action for Climate Change Initiative Partnership for Climate Action with two private sector partners: BG Titan and Genesis Energy Group. These companies are pivoting their business toward climate-positive investments and will aim to leverage up to $10 billion each in private sector investment over the next five years to support renewable energy projects, green housing and infrastructure, and climate-resilient agriculture.
In Africa, USAID is providing $1.5 million under USAID’s EDGE fund to support the Liquidity and Sustainability Facility (LSF), which will create a repurchase agreement “repo” market to increase liquidity of African Sovereign Eurobonds. LSF aims to improve African sovereign debt sustainability and enhance liquidity in the market by enabling African countries to access international markets at lower rates.
Advancing Climate-resilient Activities on Local, National, and Regional Levels
USAID is committing more than $53 million for new low-carbon and climate-resilient activities in 23 cities in Asia, Africa, Latin America, and the Caribbean. These funds will provide resources to translate national climate ambitions into local action in urban areas. [Please watch Administrator Power at COP28 - Advancing Low-Carbon and Climate-Resilient Solutions in Cities or read USAID Commits $53 Million to Address Climate Change in Cities.]
In Pakistan, USAID is investing in green infrastructure with a contribution of up to $5 million to the ReCharge Pakistan Project. With the USAID contribution, USAID/Pakistan has helped unlock $72.8 million in grant financing. The initiative aims to leverage natural systems and invest in green infrastructure to enhance Pakistan’s resilience to climate change.
USAID and partner countries are promoting Middle East and North Africa Climate Action throughout the region. Activities will include research for climate and peace through the Middle East Regional Cooperation program, leveraging USAID’s EDGE fund to engage the private sector to commercialize innovative agricultural technologies, and scaling youth-led climate initiatives.
Power Africa will contribute $2 million to Acumen’s Hardest-to-Reach Fund initiative to support energy transitions. The project focuses on expanding access to renewable energy for vulnerable communities at risk of being left behind in the clean energy transition. Power Africa also spotlighted the Empower Southern Africa program, which seeks to increase affordable clean energy in Southern Africa.
Transforming Food Systems with Climate-smart Agriculture
USAID announced that Feed the Future has exceeded the $215 million commitment to the Agriculture Innovation Mission for Climate shared at COP26 and is highlighting $100 million in continued investments over the next two years, subject to availability of funds. This funding will strengthen climate action in food systems. [Please read Feed the Future Exceeds $215 Million Commitment to Agriculture Innovation Mission for Climate, Continues Advancing Climate Resilient Food Systems with $100 Million in Investments.]
Enhancing Inclusion and Equity
USAID pledged another $5 million to the Climate Gender Equity Fund (CGEF) to increase access to climate finance for women-benefiting organizations. The first cohort of women-led organizations were selected to receive grants from the CGEF.
—--------------------
Media Spotlight
- AFP: US Pledges Climate Aid for Cities, More Private Sector Finance
- Forbes: COP 28: Barbados Achieving NDCs Through ‘Godsend’ Blue Green Bank
- CNBC: Administrator Samantha Power Interview
- Sky News Arabia: Administrator Samantha Power Interview
Are you interested in learning more? Take a deep dive into all of USAID’s COP28 announcements here, or check out Climatelinks' COP28 blogs here. You can find additional recordings from the summit here.
Courtland Matthews
Courtland Matthews is a Communications Specialist with USAID’s Advancing Capacity for the Environment (ACE) project. He holds a Master’s in Global Affairs and Policy from Yonsei University and a Master’s in Mass Communication and Digital Strategy from the University of Florida.
Carollyne Hutter
Carollyne Hutter is a Senior Communications Specialist with USAID’s Advancing Capacity for the Environment (ACE) project and has extensive experience writing on international environmental issues. Carollyne has a Master’s in Development Studies from Johns Hopkins University School of Advanced International Studies (SAIS).