IDBZ boosts renewable energy initiatives to align ...

IDBZ boosts renewable energy initiatives to align with national sustainability goals

The Environment - The Infrastructure Development Bank of Zimbabwe is prioritising renewable energy projects to support Zimbabwe’s shift towards sustainable energy, in line with its commitments under the Paris Agreement. These commitments, part of the Nationally Determined Contributions, aim to reduce greenhouse gas emissions and combat climate change.

IDBZ chairman, Kupukile Mlambo emphasised the bank’s commitment to fostering sustainable energy generation, reflecting the national directive and leveraging the framework provided by the NDCs.

“Through the development of renewable energy projects, we respond to the national call for sustainable energy generation,” Mlambo stated.

The bank has launched several significant solar initiatives, including the Nyazura 10MW solar power plant and the Ravensus solar project, representing substantial investments in Zimbabwe’s renewable infrastructure.

In the last fiscal year, IDBZ allocated funds for critical assessments and feasibility studies for these projects, including US$3 125 for the Nyazura project’s grid impact assessment and US$65 627 for the Gutu project’s feasibility and environmental assessments.

Facing frequent power outages and heavy reliance on fossil fuels, Zimbabwe’s energy sector struggles with significant challenges. IDBZ’s shift to renewable energy represents a critical step in addressing these issues and promoting a cleaner, more sustainable energy future.

In addition to these projects, IDBZ was accredited by the Green Climate Fund as a Direct Access Entity, starting January 18, 2023, for a period of five years. This accreditation will enhance the bank’s ability to mobilise resources for green initiatives. The establishment of a specialised Climate Finance Facility is also underway, with the government injecting US$3 million in startup funding to attract further investment.

Moreover, IDBZ is working towards obtaining the Sustainability Standards Certification Initiative led by the Reserve Bank of Zimbabwe, part of its commitment to sustainable development and adherence to Environmental, Social, and Governance frameworks.

This initiative not only underscores the bank’s dedication to sustainable practices but also aims to secure funding for green and low-carbon projects, reflecting IDBZ’s ongoing commitment to environmental stewardship and sustainable infrastructure development in Zimbabwe.