The global effort to fight climate change as well as the need to adapt and build resilience to the changing climate (climate adaptation) pose a set of challenges and opportunities for financial institutions in the MENA region. UNEPFI underwent a consultation process with member banks in the MENA region regarding climate finance in general and opportunities to provide support in scaling private sector finance for climate action in the region.
The global effort to fight climate change as well as the need to adapt and build resilience to the changing climate (climate adaptation) pose a set of challenges and opportunities for financial institutions in the MENA region. UNEP FI underwent a consultation process with member banks. Some recurring topics have been: ◾ Effective climate action requires clear sectoral priorities for banks to focus on, as well as typologies or taxonomies to guide lending portfolios. ◾ While banks recognise the importance and the business case for expanding their climate finance portfolios, and climate-aligned refinancing options are generally available, commercially viable climate finance projects are still scarce. ◾ Banks’ climate finance engagement often goes beyond their own lending books by advocating at the national and international levels, and shaping policies and priorities through their system-wide networks. ◾ The teams within banks frontrunning the climate finance market recognise the need for awareness building with other stakeholders.
