Deutsche Bank signed an Accreditation Master Agreement (AMA) with the green climate fund (GCF), enabling the bank to receive and use GCF capital and raise further funds from private sector investors to support action on climate change. The agreement was signed in London by Nicolas Moreau, head of Deutsche Asset Management and member of the management board of Deutsche Bank AG, and executive director of the GCF’s Secretariat, Howard Bamsey.
“We are pleased to sign this agreement in order to work with GCF to mobilise private sector capital and increase contributions to climate financing for adaptation and greenhouse gas mitigation measures in developing countries,” said Moreau.
The GCF works through a wide range of accredited entities to channel its resources to projects and programmes. Deutsche Bank is the second commercial bank to sign an Accreditation Master Agreement with GCF.
“This signature marks a milestone for GCF as it unlocks the broad international expertise of Deutsche Bank in directing private investment flows toward climate action,” said Howard Bamsey. “It follows from GCF’s recognition of the essential role of the private sector in filling climate finance gaps.”
The GCF has already approved the first funding proposal from Deutsche Bank at its 14th meeting in Songdo, South Korea, in October 2016. The Universal Green Energy Access Programme combines capital from the GCF with private sector investment to finance renewable electricity access for nearly half a million people and small and medium sized enterprises in cooperation with local banks in Africa. The GCF’s anchor investment of $78.4m allows Sustainable Investments, the group within Deutsche Asset Management that manages environmental and social assets, to raise a total of $300m in capital.
The proposal has been endorsed by the Governments of Benin, Kenya, Namibia, Nigeria and Tanzania, which is where the program will initially focus investments in the first three years. The signing of the Accreditation Master Agreement marks a major step towards implementation of this programme.