While the concept of transition finance is gaining global momentum, its practical implementation is complex and challenging, and especially in developing economies.
Indeed, in many countries across Africa, the mainstreaming of transition finance – which bridges the gap between traditional and sustainable financing as businesses transition to net zero carbon emissions – is proving challenging for a number of reasons, not least a lack of harmonised definitions, regulatory and investment frameworks.
These elements are fundamental to the growth and development of transition finance, enabling banks, investors and policymakers from Cairo to Cape Town to step-up their support of companies, especially in hard to abate sectors, to adjust and decarbonise.
Challenges in the transition are inevitable. But the pursuit of net zero also presents opportunities to financial instituions and companies. …
