Environment-related and impact investments have grown substantially in recent years, with more than $1 trillion in impact investing assets under management globally. About $578 billion in green bonds were issued by 2021, with double-digit increases each year.
But very few of those climate-related investments are making it to the world’s lowest-income countries. It’s partly due to a lack of willingness from major donors to cough up funding they’ve promised, and partly due to lower risk appetite as interest rates and debt burdens mount.
This week we look at how carbon credits or other investments might offer an opportunity to unlock climate finance on the African continent.