Entrepreneurship and innovation in development finance institutions for promoting the clean development mechanism in Africa

Abstract

This article demonstrates how entrepreneurship and innovation can help promote the clean development mechanism in Africa through development finance institutions. If DFIs do not have sufficient knowledge of how to enhance entrepreneurship and innovation they will have only a limited impact in promoting innovative financial instruments for achieving environmental benefits. Supporting innovation and entrepreneurship will enable DFIs to create opportunities for adaptive learning and creativity, to adjust to emerging CDM innovative financial instruments and to play a key role in promoting CDM in Africa. It will make DFIs more knowledge based and enhance their ability to provide monetary incentives through their project financing activities, to encourage and facilitate partnerships to support the CDM, and to provide technical advice and support to clients for project design, planning and implementation.

Additional information

Notes on contributors

Patrick Karani

Respectively, Vice-President, Infrastructure, Private Sector and Regional Integration, African Development Bank (AfDB), former Chief Executive Officer (CEO) and Managing Director of the Development Bank of Southern Africa (DBSA); and Environmental Strategist, DBSA, Advisor, BEA International, CBNet representative in Africa, and co-editor, CDM Investment Newsletter.