Dominated by international funders and development banks, African climate finance faces an estimated annual funding gap of $250 billion – a gap that African commercial banks could help bridge. Increased participation from these banks could mobilise domestic and regional resources, optimise private sector capital reserves, and more effectively direct funding towards local projects. However, a lack of experience in climate data capturing and modelling processes poses challenges for African groups. Following in the footsteps of the African Green Banks Initiative, how can collective and pan-African strategies be implemented?
Key Points:
- COP, the Marrakech Declarations, the African Green Banks Initiative: How are African banks taking the lead?
- Stress tests, solvency rules, macro and micro-supervision: How can regulators and supervisors better support banks?
- Bankable projects and local initiatives: Are commercial banks having real impact?