USAID Announcements at COP29

Early Warnings for All

At COP27, in November 2022, USAID announced $33 million to provide communities at risk of natural disasters with access to effective early warning systems. At COP29, USAID announced it has provided an additional $50 million over the past two years, including $16 million in new FY24 dollars, to support the Early Warning for All initiative through the President’s Emergency Plan for Adaptation and Resilience (PREPARE). In partnership with NOAA, WMO, UNDRR, IFRC, and the National Meteorological and Hydrological Services, we have expanded flood and flash flood early warning systems to 30 more countries since 2022. By 2027, our efforts will enable an additional 200 million people with critical, life-saving flood warnings, bringing the total number of people supported to over 3 billion in 100 countries.

Climate Smart and Disaster Ready

As part of its Climate Smart and Disaster Ready program, USAID announced $11.8 million in new awards to strengthen localized climate adaptation for communities at greatest risk to climate-related disasters in current and foreseeable humanitarian contexts, bringing the total investment under this initiative to date to $16.2 million. Under this program, USAID has funded five multi-year initiatives in West Africa, Central America, Southeast Asia, South Asia, and the Pacific Islands, including the previously announced $4.4 million to support young people in the Pacific Islands to advance disaster risk reduction and climate adaptation efforts in their own communities.

Power Africa Launches Partnership with Nordic Governments Via Investment Mobilization Collaboration Alliance

As part of the joint collaboration with partners Denmark, Finland, Sweden, and Norway, Power Africa will make an initial commitment of $10 million over two years into the Investment Mobilization Collaboration Alliance’s (IMCA) third funding window supporting clean energy and critical mineral investments in Africa. This investment will improve critical minerals value chains and increase access and use of energy to advance industrialization. In joining this impactful, innovative international partnership, Power Africa will leverage partner funds and support proposals to advance clean energy across the continent.

Advancing Women’s Leadership in Climate Action

At COP29, USAID commits $10.8 million to champion women as decision-makers, stakeholders, educators, and experts in responding to the climate crisis—including through economic leadership. We are investing in action and evidence-building that addresses women’s empowerment through equitable access to land; integrates gender-based violence prevention in fisheries conservation to ensure safety in the fisheries sector; and builds women’s participation and economic empowerment in green industries and clean energy sectors.

Scaling Climate Finance

USAID is investing $41.1 million in a variety of blended finance vehicles with the goal of driving private climate finance into hard-to-reach geographies and sectors. This includes a $7.25 million investment through the Enterprises for Development, Growth, and Empowerment (EDGE) Fund to incentivize private investment in impact funds and mobilize investment in natural climate solutions which includes $2.75 million in grants to enable two new investment fund managers under the PREPARE Adaptation Finance Window that aim to catalyze additional public partners to co-invest. The Agency will also commit $27.7 million for the Colombia Invest for Climate activity, which aims to transform markets and financial systems and direct public and private funds into climate-smart businesses. Finally, USAID is committing $6.1 million to the Partnerships for Green Investment initiative announced at COP28 last year to mobilize at least $200 million to achieve 50 million tons of emissions reductions, climate resilience, biodiversity protection, and benefit sharing across Southeast Asia.

Climate Finance for Agriculture in Africa

USAID will invest $9.3 million to accelerate climate finance for climate-resilient and low emissions development investments in agriculture and food systems across Africa. In Zambia, USAID is supporting the country’s first climate-focused investment fund, aiming to mobilize $70 million for climate adaptation in critical sectors, including agriculture. In Ghana, USAID created a $2.6 million co-investment program to incentivize private sector investment in climate adaptation and mitigation in agriculture, complementing cooperation with the government on national carbon market development. Finally, through the Africa Trade and Investment activity, USAID is supporting a pan-Africa Fund to finance African microfinance institutions and agricultural entities, aiming to leverage an additional $5 million in commercial investments for climate-smart agriculture, with a total investment leverage ratio of 6:1.

Marine Climate Finance

Coastal resilience and blue carbon present significant opportunities for advancing development aims, achieving global climate goals, and attracting public and private capital. At COP29, USAID announced $3.2 million to invest in and mobilize marine climate finance. Through the Coastal Resilience, Carbon, and Conservation Finance (C3F) initiative, USAID is working globally to drive investment in blue carbon and coastal resilience projects that benefit local communities. USAID is also investing in the development of the Nautilus Ocean Guarantee Company, which seeks to de-risk investments in blue economy sectors. In addition, through the Enterprises for Development, Growth, and Empowerment (EDGE) Fund, USAID is helping stand up the Outrigger Impact Fund, which aims to drive $500 million of investment into coastal and marine natural capital and increase the resilience of at least 50 million climate-vulnerable coastal people.

Cambodia Climate Financing Facility 

USAID provided technical assistance to support the development of the Cambodia Climate Financing Facility (CCFF). The $100M green bank will fill a critical funding gap for climate projects in Cambodia. Once operationalized, the facility will provide concessional finance to local banks and businesses to stimulate investment in climate adaptation and mitigation projects, assisting Cambodia in meeting its Nationally Determined Contributions.

Launch of SERVIR Central America Hub

At COP29, USAID and NASA, through the President’s Emergency Plan for Adaptation and Resilience (PREPARE), announced that the new SERVIR Central America Hub will launch in December to bolster the resilience of more than 40 million people living in one of the most climate-vulnerable regions on the planet. SERVIR is a flagship USAID-NASA partnership to use satellite data for evidence-based, climate-related decision making at local, national, and regional levels. USAID announced $6.6 million in initial investment for the Hub. The new Central America Hub aims to reduce vulnerability to climate change impacts and environmental degradation, including improving water and food security, reducing the risks of extreme weather events, and strengthening the resilience of biodiversity and ecological systems. SERVIR Central America will develop Earth observation-based tools and services jointly with key stakeholders across the region, helping Central Americans prepare for and manage climate-related risks and environmental challenges.

Support for Direct Power Purchase Agreement Vietnam

In Vietnam, USAID has supported the development of the recently approved Direct Power Purchase Agreement (DPPA), which will allow businesses to power their operations with up to 100 percent renewable energy for the first time. This helps Vietnam attract private sector investment in renewable energy while meeting the needs of corporate leaders seeking to integrate renewable energy into their operations and achieve their corporations’ emissions reduction targets. The DPPA enables international and domestic businesses in Vietnam to achieve greater carbon reduction while accelerating the country’s clean energy transition and increasing Vietnam’s resilience to climate change. USAID has supported Vietnam’s Ministry of Industry and Trade on this effort since 2017.

Launch of U.S.-India Low Carbon Comfort Cooling Collective

USAID is committing $1 million for the new Low Carbon Comfort and Cooling Collective in India. In the face of intensifying extreme heat, the activity aims to reduce carbon emissions from cooling, decrease stress on electricity networks, and lower the cost of efficient cooling and alternative cooling solutions. The activity aims to harness the power of the public and private sectors to mobilize $1 billion towards a 50 percent reduction in cooling-related emissions in India by 2030.

Mobilizing Climate-Friendly Investments in Europe and Eurasia

USAID is investing $5 million to mobilize climate-friendly investments in the Europe & Eurasia energy sectors. Billions of dollars and millions of miles of transmission investments are needed globally to make the clean energy transition a reality.  Across the Europe and Eurasia region, there is a significant backlog of renewable energy projects in various stages of concept and development awaiting grid connection. USAID/Europe and Eurasia is working with key partners to significantly increase the amount of renewables making up the electricity generation portfolio. USAID is prioritizing streamlining and rationalizing the process of connecting renewable energy projects to electricity networks and supporting the development of transmission infrastructure to facilitate the flow of clean energy across the continent.

Investing in Local Climate Adaptation Solutions

Recognizing that the most important innovations to counter the climate crisis come from communities on the front lines, USAID previously announced an initial investment of $5 million in early 2024 to support young researchers focused on local climate issues in Africa, the Pacific, Latin America, and the Caribbean, administered by the University of Arizona. At COP29, USAID committed an additional $2 million, bringing the total support to $7 million for the program’s investment in local climate adaptation education and innovation. Through these grants, universities will develop programs working with youth and young professionals to research drivers of climate-related disasters and humanitarian approaches to address them.

Mobilizing Investment for Early Retirement of Indonesia Coal-fired Power Plant

USAID is assisting a consortium in Indonesia, led by the country’s sovereign wealth fund, to establish an approximately $255 million equity investment in the first coal power, early phase-out transaction under the Indonesia Just Energy Transition Partnership. USAID will support an agreement between Indonesia’s sovereign wealth fund and public infrastructure company, PT Sarana Multi Infrastruktur, and private investors in order to finalize the early retirement of the 660-megawatt Cirebon coal-fired power plant. This activity will reduce carbon emissions by up to 30 million tonnes of greenhouse gas emissions over a 15-year period—the equivalent of taking 800,000 cars off the road.