Burkina Faso has initiated changes along two main lines, namely: (i) improving the governance of the green and inclusive economy and (ii) developing accounting, taxation and green finance. In addition to the CPF, the Goverment of Burkina Faso has requested the support of GGGI for technical assistance for the structure and design of the Burkina Green Energy Fund (BGEF). The BGEF is a fund that will provide some financial instruments such as equity, guarantee, and subordinated debt to Renewable Energy (RE) and Energy Efficiency (EE) projects to attract additional financing from local Financial Institutions. The principal objective will be to provide financial mechanisms with the express purpose of de-risking projects to the extent that they can access financing from local banks and financial institutions. The targeted projects for BGEF include renewable IPPs, mini-grid solar systems, off-grid, solar home systems, and energy efficiency for small- to medium-sized enterprises.

The Project will support Goverment of Burkina Faso to develop a National Financial Vehicle in Burkina Faso and increase their opportunity to have access to climate finance, especially in Renewable energy and energy efficiency. The major output of this project is to develop a National Financial Vehicle that will integrate the minimum requirement in order to facilitate access to climate finance.

Objectives: This project aims to support the Government of Burkina Faso during its Green Growth transition by developing a financial mechanism that will enable increase of private investment, particularly in renewable energy and energy efficiency, as well as capacity development of key stakeholders.

Outcome: Burkina Faso’s capacity of climate finance mobilization is enhanced, through the Green Energy Funds.

Impact: Burkina Faso private sector investment in energy sector increased and national financial institutions are more and more willing to invest in.