The Transformative Climate Finance Program (TCFP) of the AU-GRAP is entering its second phase, capitalizing on the demonstrable results achieved under Phase 1. Jointly delivered by the African Union Commission (AUC) and the Global Green Growth Institute (GGGI), and funded by the UK’s Foreign, Commonwealth and Development Office (FCDO), Phase 2 is designed as a catalytic intervention to unlock and accelerate Africa’s climate finance transformation. It scales tested models at the national level in the seven AU Member States piloted under Phase 1: Côte d’Ivoire, Ethiopia, Lesotho, Namibia, Rwanda, Senegal, and Zambia, targeting the systemic barriers that have historically constrained Africa’s ability to access, deploy, and absorb climate finance from international public finance and private capital. 

In February 2022, the African Union (AU) Heads of State and Government adopted the AU Green Recovery Action Plan (AU-GRAP 2021–2027) to guide a shift towards sustainable recovery across the African continent. The AU-GRAP provides a comprehensive framework for sustainable economic recovery from the COVID-19 pandemic, with a strong focus on ensuring that recovery is environmentally sustainable. It is built around five key thematic pillars: Climate Finance, Renewable Energy, Biodiversity & Nature-Based Solutions, Climate Resilient Agriculture, and Green and Resilient Cities with a focus on Water. 

To translate the AU-GRAP into action, the AUC and GGGI jointly implemented the Global Affairs Canada (GAC)-funded Phase 1 of the TCFP AU-GRAP, in collaboration with the African Capacity Building Foundation (ACBF). Phase 1 was piloted in seven AU Member States, Côte d’Ivoire, Ethiopia, Lesotho, Namibia, Rwanda, Senegal, and Zambia, as well as three Regional Economic Communities (RECs): the Common Market for Eastern and Southern Africa (COMESA), the East African Community (EAC), and the Southern African Development Community (SADC). Phase 1 ran from January 2023 to June 2026. 

Phase 2 runs from July 2026 to December 2028 and is focused on national-level activities in the same seven target countries. 

Building on the Phase 1 foundation of the AU-GRAP, the AU Climate Finance Unit (CFU) is emerging as the continental hub for climate finance coordination and delivery, tracking climate finance flows, curating a pipeline of investment-ready projects, and aligning regional and national priorities with financing opportunities. Under Phase 2, the CFU will strengthen these functions, positioning the AU as the continent’s convening and coordination center for climate finance access, while GGGI provides green investment services in the seven target countries, delivering feasibility studies, designing and structuring green investment projects, facilitating investor dialogue, and mobilizing green investment, all while reinforcing in-country ownership and climate and green finance capacity. 

Intermediate Outcomes

Phase 2 is structured around two interlinked outcomes: 

Project development and pipeline maturation – developing national-level climate finance pipelines, de-risking green investment projects, and bringing projects to bankability, with support from the AUC, AU-CFU and dedicated GGGI technical and sector experts and NORCAP expertise on project preparation and investor engagement. 

Country-level intervention and capacity strengthening – strengthening country access to climate finance mechanisms and designing and financing climate solutions that support inclusive and sustainable development, with the AUC serving as a coordination hub enabling cross-country learning and promoting investment opportunities. 

Phase 2 contributes to the Africa Climate Action Programme (AfCAP), promoting Africa’s transition to a climate-resilient, low-carbon future by building institutional capacity, mobilizing climate finance, and encouraging innovation — aligned with and reinforces the AU Climate Change and Resilient Development Strategy (2022–2032) and the Agenda 2063: The Africa We Want. 

Despite high ambition in their Nationally Determined Contributions (NDCs), AU Member States face persistent barriers to translating commitments into tangible action. Mobilizing sufficient climate finance for adaptation and mitigation, particularly from private and innovative sources, remains a significant hurdle. Climate priorities are not consistently mainstreamed into national budgets and planning processes, while human and institutional capacity to access emerging climate finance opportunities is limited. These constraints are compounded by high upfront bankable project preparation costs, complex requirements for accessing multilateral climate finance funds, and fragmented governance and coordination, all of which slow progress and increase vulnerability to climate impacts. 

GGGI is uniquely positioned to deliver Phase 2 of the TCFP, building on a strong partnership with the AUC and the countries engaged since Phase 1. GGGI’s policy-to-project approach, its established relationships with National Designated Authorities (NDAs), and its climate and green investment capacity across Africa enable it to translate regional policy priorities into bankable national actions.