The Africa Climate Summit (ACS), co-hosted by Kenya and the African Union Commission, is set to take place in Nairobi from 4 to 6 September 2023. ALN is the official legal partner of this year’s summit, which will convene leaders, development partners, intergovernmental organisations, the private sector, academia, civil society, and others to address climate change in Africa.
The theme of the summit is “Green Growth and Climate Finance for Africa,” with an emphasis on the interplay between climate change and Africa’s development. ACS aims to present a visionary approach for a Green Growth agenda in Africa, which seeks to harness the continent’s rich human and natural resources in a climate-positive manner. It will focus on developing solutions that promote climate action, boost economic growth, and ensure that Africa is not marginalised in international markets due to high emissions.
ACS will spotlight five main areas of growth:
i. energy transition and renewable energy,
ii. green minerals and manufacturing,
iii. sustainable agriculture,
iv. sustainable infrastructure,
v. urbanisation, and natural capital.
These growth areas will be supported by two critical cross-cutting aspects: adaptation and resilience to climate risks and climate finance and carbon credits.
The summit also addresses the challenges and opportunities of climate finance in Africa, emphasising the need for investments to drive the Green Growth Agenda.
ALN’s Impact on Advancing Green Growth and Climate Finance
As an alliance of leading corporate law firms, we are harnessing our expertise to navigate the complexities of sustainable development, positively impacting our continent’s future.
We have been at the forefront of transformative initiatives that drive positive climate change and impact. Our involvement, work and partnerships are contributing to the promotion of green growth and climate finance solutions in Africa in several deals such as:
i. The Turkana Wind Project
Serving as legal advisors to the Turkana Wind Project sponsors, ALN supported the realisation of Kenya’s largest power generation initiative. This wind farm, poised to become the largest on the African continent, underscores ALN’s dedication to advancing renewable energy solutions and sustainable power generation.
ii. UNCDF: Crafting Green Bonds for Sustainable Development
Acting on behalf of the United Nations Capital Development Fund (UNCDF) in the creation of Tanzania’s pioneering Tanga Uwasa Green note programme. This initiative marked a significant milestone as the first-ever green bond in Tanzania. ALN contributed to the establishment of a framework that facilitates environmentally conscious investments, fostering green growth within the region.
iii. IFC: Innovative Forestry Bonds for Carbon Credit Funding
Acting for the International Finance Corporation (IFC), ALN played a crucial role in the creation of a groundbreaking forestry bond, a “first-of-its-kind” endeavour enabling investors to be compensated using funds generated from carbon credits originating from forestry and conservation projects in Kenya. Through comprehensive legal due diligence, regulatory guidance, and meticulous review of project-related contracts, ALN ensured the successful issuance of this innovative bond.
iv. M-Kopa Solar: Empowering Renewable Energy Ventures
By facilitating a groundbreaking USD 80 million non-recourse facility, ALN enabled M-Kopa Solar, a global leader in pay-as-you-go energy solutions for off-grid homes, to expand its operations. This transaction garnered international recognition when it was awarded, the prestigious Treasurer’s Deals of the Year Award in 2017 by the Associate of Corporate Treasurers, emphasising ALN’s role in contributing to accessible renewable energy for all.
v. Absa Bank & Acorn Project Three: Enabling Sustainable Real Estate Development
ALN’s impact in promoting green growth is underscored by its role in having facilitated a USD 50.9 million asset-backed finance transaction with Acorn Project Three, where ALN acted for Absa Bank Kenya. This funding supports the construction of student accommodation towers in Nairobi, adhering to Green Loan Principles. ALN’s legal guidance ensured that the development aligned with resource-efficient and sustainable building practices, contributing to both the real estate sector and the broader goal of green growth.
Furthermore, we intend to elevate Africa’s voice on the international stage and foster partnerships to drive growth and attract new finance and investment for a climate-compatible vision for Africa.
