Uganda Development Bank Limited (UDB), the country's national Development Finance Institution, has reaffirmed its commitment to advancing Uganda's climate action and sustainable development agenda through strategic engagement at the Conference of the Parties (COP). The announcement was made during the Pre-COP31 National Forum at Silver Spring Hotel in Kampala, which brought together government agencies, development partners, civil society, and private sector players to reflect on Uganda's climate ambitions ahead of COP31.
COP31, to be held in Antalya, Türkiye, from November 9 to 20, 2026, will mark the fourth year in a row that UDB is participating in the annual UN Climate Conference. UDB is the lead sponsor of the Ugandan Pavilion for the second consecutive year, contributing UGX 200 million. The bank's participation in COP is a strategic investment in elevating Uganda's voice within the global climate discourse and showcasing the country's climate investment potential.
Minister of State for Environment Beatrice Anywar said the event was key to consolidating Uganda's priorities in seven negotiation areas: adaptation, mitigation, climate finance, technology, capacity building, gender, and compliance. Anywar, who is leading Uganda's delegation at COP31, said Uganda will continue to advocate for adequate, predictable, and accessible finance, with emphasis on grant-based support for adaptation and the needs of least developed countries.
Dr. Francis Mwesigye, Director of Economic Research and Knowledge Management at UDB, said the sponsorship represents a strategic investment in elevating Uganda's voice within the global climate discourse. Dr. Mwesigye, who represented Managing Director Dr. Patricia Ojangole, said UDB has taken deliberate institutional steps to position climate finance as a central pillar of its development financing mandate.
UDB has established a dedicated Climate Finance Facility (CFF) and Climate Finance Unit to identify bankable climate investments, provide technical guidance on financing structures, assess climate-related risks, and support projects contributing to emission reduction, climate adaptation, and economic resilience. Since its inception, the bank has mobilized not less than USD 200 million to capitalize this Climate Finance Facility.
At COP31, UDB will host three strategic side events, including "From Climate Commitments to Financing Bankable Projects: Mobilizing Green Finance Using Market-Based Instruments" and "Financing Decarbonization of the Transport Sector: The Case of E-Buses, E-Bikes, and Charging Infrastructure." The bank also signed a Memorandum of Understanding to formalize partnerships promoting Uganda's investment opportunities in renewable energy, climate-smart agriculture, sustainable infrastructure, and green manufacturing.
Uganda faces significant environmental challenges, including a decline in forest cover from 24% in 1990 to 9% in 2015, despite a slight recovery to 12.4% currently. Wetland coverage stands at 8.9%, down from 13%, according to the World Economic Forum Report (2020). UDB, with about 80% of its portfolio in primary agriculture, agro-processing, and manufacturing, is mandated to accelerate socio-economic development through sustainable financial interventions.
Key points
- UDB's participation in COP31 marks its fourth consecutive year of engagement in the annual UN Climate Conference.
- The bank has established a dedicated Climate Finance Facility (CFF) to support climate-related projects.
- UDB will host three strategic side events at COP31 to promote Uganda's climate investment potential.
