Genesis Energy Group Limited (GENESIS) and the U.S. Agency for International Development signed a Memorandum of Understanding (MOU) December 6, 2023, during COP 28. This MOU will see GENESIS mobilize US$10 Billion for strategic climate investments in green energy, renewable energy projects, and nature-based solutions that respond to countries’ Nationally Determined Contributions under the Paris Agreement.
Under the MOU, GENESIS, with USAID support, will work to deploy US $10 billion into strategic climate projects over a five-year period, supporting the USAID-funded Comprehensive Action Against Climate Change Initiative (CACCI). USAID Chief Climate Officer and Deputy Assistant Administrator Gillian Caldwell said, “This partnership is part of our ongoing commitment to supporting the private sector in driving climate change solutions. We look forward to working with Genesis to help spur private sector investment in climate action, which is key to achieving the Paris Agreement and country-level commitments.”
Eric Reading, Chief Climate Officer at Abt Global said “We are very excited about this new partnership for climate action as part of CACCI, which aims at bringing climate-aligned companies into partnership with USAID and countries that are seeking to find private financing to accomplish their NDCs and NAPs.”
“This is a great moment for Genesis Energy Group,” said Akinwole Omoboriiowo II, Chairman and CEO. “This MOU echoes our mission and paves the way for a decarbonised Africa, ensuring green investment in the right directions to deliver CACCI, which is the centrepiece of USAID’s response to the COP28 Global Stocktake; and its assessment that we are not delivering fast enough on our commitments under the Paris agreement.”
The private sector plays a vital role in addressing the root causes of development challenges through market-based solutions and investments across all sectors. Through enhanced private-sector collaboration, the MOU will enhance development outcomes with a focus on climate.
About GENESIS Energy
GENESIS Energy Group (“GENESIS”) a Pan-African multi-award-winning energy infrastructure developer, climate impact investor, and asset management group, has been at the forefront of driving green energy initiatives across Africa for nearly two decades. Committed to “Lighting up Africa One Community at a Time,” GENESIS has successfully deployed multiple investments in the energy, gas, and power sectors across Africa.
About ABT Global
ABT Global, previously Abt Associates (“ABT”) is USAID’s lead implementing partner for the Comprehensive Action for Climate Change Initiative (CACCI), the agency’s global flagship program to help nations meet their Paris Agreement climate commitments by creating programs and policies to mitigate and adapt to climate change.
More Information
In August 2019, USAID issued its first-ever private sector-focused Co-Guarantee in partnership with GENESIS’s Nigerian subsidiary GEL Utility Limited (GELUL). The 13 billion naira ($36.1 million) co-guarantee for a 15-year bond will allow GELUL access to long-term local currency financing at a reasonable interest rate and tenor.
The parties intend to leverage similar bond programs in African local markets to catalyze clean energy infrastructure capital deployments, alongside other instruments of large-scale funding including concessionary long-term debts, technical assistance facilities-TAF, grants, and equity support notes.
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