Zambia’s Green Bond Breakthrough Showcased at NAP Expo 2025

Lusaka, Zambia – August 2025 – At the NAP Expo 2025, jointly organized by UN Climate Change (UNFCCC) and the Government of Zambia, a spotlight was cast on one of the country’s most promising financial innovations: green bonds.

UNDP Zambia, through the Biodiversity Finance Initiative (BIOFIN), hosted a technical session titled “Financing Adaptation Through Innovative Finance Solutions: Zambia’s Green Bond Journey.” The event explored how green bonds can be leveraged to support both climate adaptation and biodiversity conservation.

“Zambia’s first green bond issuance is more than a financial instrument — it’s a signal to the market, and the world, that Zambia is serious about climate action and finding home-grown solutions to fund its adaptation priorities,” said Dr. James Wakiaga, UNDP Zambia Resident Representative, in his opening remarks.

Photo: Dr. James Wakiaga, UNDP Zambia Resident Representative

CEC Renewables: a case study in action

A highlight of the session was a case study by CEC Renewables, a subsidiary of Copperbelt Energy Corporation. The company became the first to list a green bond on the Lusaka Securities Exchange (LuSE), made possible by Zambia’s newly developed green bond guidelines, listing rules, and targeted tax incentives.

These reforms were the result of coordinated efforts between BIOFIN Zambia, financial regulators, and government institutions. CEC’s first tranche raised US$53.5 million, with transaction costs of US$2.9 million—highlighting the need to strengthen local advisory and certification services to reduce future costs. Despite these costs, investor demand was strong: the tranche was 178% oversubscribed, followed by a second tranche of US$96.7 million, which saw 220% oversubscription.

CEC aims to install 750 MW of solar power by 2027, directly contributing to Zambia’s clean energy and climate resilience goals.

Photo: Ms. Lizzie Muwowo - Senior Manager, Corporate Finance, Copperbelt Energy Corporation

A nature-positive investment

CEC’s solar investments come at a crucial time. With 80% of Zambia’s electricity derived from hydropower, the country is increasingly vulnerable to climate-induced droughts. By expanding solar capacity, Zambia not only reduces pressure on hydro resources but also eases dependence on charcoal, a major driver of deforestation.

This green bond, therefore, represents more than an energy solution—it is a nature-positive adaptation measure.

“Green bonds are not just about raising money. They are a catalyst for systemic change in how Zambia finances its adaptation and biodiversity priorities,” said Mr. Bruno Mweemba, Senior Regional Technical Advisor for the Africa Region, BIOFIN.

The importance of local capacity

One issue raised during the session was the cost of issuing green bonds. High fees are often linked to international certifications and second-party opinions, some of which are issued without site visits. This perception-based premium makes a strong case for investing in local advisory and verification capacity, which could significantly lower transaction costs while maintaining credibility.

Partnerships power progress

Zambia’s green bond success is a product of strong collaboration between government agencies, regulators, the private sector, and development partners. The case of CEC Renewables shows what’s possible when policy, finance, and innovation come together.

Zambia’s experience offers a compelling blueprint for other developing countries seeking to mobilize private capital for climate and biodiversity solutions.