UK Launches £12 Million Climate Financing Program to Support Uganda’s Green Economy

Uganda's Green Economy
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Ugandans involved in or interested in participating in the green economy are set to gain access to affordable financing in the coming months, thanks to a new climate change financing program introduced by the UK government.

The program, known as the Climate Financing Accelerator (CFA), is a £12 million (sh52 billion) technical assistance initiative funded by the International Climate Finance (ICF), administered through the UK government’s Department for Energy Security and Net Zero (DESNZ).

UK High Commissioner Launches CFA Program

On October 31, 2023, the UK High Commissioner to Uganda, Kate Airey, officially launched the CFA program at her residence in Kampala. She emphasized that CFA is a crucial part of the UK’s commitment to supporting climate action by offering practical solutions to assist middle-income countries in financing and fulfilling their climate commitments as outlined in the Paris Agreement.

Green Economy and Climate Change

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A green economy is a concept focused on sustainable development achieved through public and private investments aimed at creating infrastructure that fosters social and environmental sustainability. As climate change continues to pose increasing challenges, this approach is gaining traction as countries and global partners strive to limit global warming to 1.5°C.

CFA’s Role in Achieving Climate Goals

The CFA program, previously piloted in various countries, including South Africa, collaborates with middle-income nations to facilitate the realization of their national climate plans and Nationally Determined Contributions (NDCs). It does so by identifying and addressing the challenges and obstacles hindering the necessary flow of finance to effectively support their climate ambitions.

The program brings together project developers, finance providers (including experts from the City of London), and policymakers to establish a collaborative framework for unlocking a consistent stream of funding for large-scale climate projects. This approach aims to create a pipeline of “investment-ready” low-carbon projects.

Co-Benefits of the CFA Program

The CFA program is expected to yield several co-benefits, including support for green recovery efforts following the COVID-19 pandemic through inclusive approaches to sustainable development, improved gender equality, and enhancing resilience to climate impacts.

Scaling Up from Successful Pilots

The concept of CFA received affirmation through three pilot activities funded by the former Department for Business, Energy and Industrial Strategy (BEIS). These pilots, conducted between 2017 and 2020, involved Nigeria, Colombia, and Mexico and revealed a significant demand for the CFA approach. This success prompted the decision to expand the concept into a £12 million ICF program, according to a statement by the UK High Commission.

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