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The document analyzes the role of carbon markets in financing climate action in developing countries, estimating potential revenues and evaluating different market mechanisms. It argues that while the Clean Development Mechanism (CDM) has provided a starting point, expanding to sectoral and allocation-based mechanisms is necessary to cover the high-emitting electricity and industrial sectors of Major Developing Economies (MDEs). The paper proposes a phased approach to developing country participation, moving from broadened CDM and other market mechanisms for sustainable development (MMSDs) toward sectoral and economy-wide commitments, contingent on developed countries meeting their own stringent targets.

The report analyzes Green Investment Schemes (GIS) as a hybrid carbon finance mechanism in Central and Eastern Europe (CEE) that 'greens' surplus Assigned Amount Units (AAUs) by earmarking sales revenues for domestic climate mitigation. It argues that GIS can overcome the failures of the Clean Development Mechanism (CDM) and Joint Implementation (JI)—particularly in energy efficiency and small-scale projects—by utilizing more flexible, programmatic architectures and simplified monitoring and verification (M&V). The report identifies the thermal retrofitting of old building stock as a high-priority target area due to its long-term climate impact and significant social co-benefits. It provides specific architectural recommendations, such as the use of sectoral baselines, post-2012 crediting periods, and the dominance of 'hard greening' to ensure environmental integrity.

The document advocates for sustainable public procurement (SPP) as a means for governments to lead by example in sustainable development. It highlights that SPP can drive innovation, create market demand for green technologies, and achieve long-term value for money through whole-life costing. IISD supports these goals by conducting national preparedness assessments and researching life-cycle costing standards to overcome the barrier of higher initial capital costs.

The report examines the entry of South African firms into the Egyptian market, highlighting the country's macroeconomic stability and growth since 1991. While South African companies find Egypt promising, they face significant hurdles including bureaucratic red tape, corruption, and cultural differences. The document provides a detailed overview of Egypt's socio-economic environment, sectoral strengths in energy and tourism, and specific recommendations for both the Egyptian and South African governments to enhance bilateral economic ties.

The document analyzes the diverse landscape of coffee labelling—including organic, shade-grown, bird-friendly, and fair trade—and identifies a lack of coordination as a primary weakness. It explores the concept of 'mutual recognition' from international trade and eco-labelling case studies to suggest a framework for coffee labellers to align their standards. The report proposes six specific initiatives, such as establishing a labellers' network and a common code of conduct, to reduce consumer confusion and lower certification costs for producers.

The report analyzes the potential for Chile to expand exports of sustainable products to the European Union, using organic wine and sustainable forest management (SFM) as case studies. It identifies significant barriers for organic agriculture, including a lack of a recognized national certification system, high conversion costs, and substantial EU subsidies for local producers. In contrast, the forestry sector shows more progress through international certifications like FSC and ISO 14.001, though it faces challenges regarding the credibility of national standards and the complexity of value chain management. The document argues that while the EU market is growing, Chilean producers are hindered by a lack of coordinated state strategy, insufficient market information, and a reliance on discretionary import authorizations rather than formal equivalence agreements.

The report analyzes the potential for developing countries to leverage 'green markets' for sustainable products, focusing on Chilean exports of organic wine and certified forestry products to the European Union. It tests hypotheses regarding the existence of 'green industry havens' in importing countries and a lack of domestic capacity in Chile. The findings highlight significant non-tariff barriers, including complex certification requirements, high costs of conversion and auditing, and a lack of systematic market information. While the forestry sector shows more success through international schemes like FSC and PEFC, the organic sector struggles with a lack of a recognized national certification system and significant EU subsidies that distort competition. The report recommends coordinated government strategies, the creation of a Sustainable Trade and Innovation Centre, and the pursuit of mutual recognition agreements for certification standards.

The report identifies the current state of Colombia's bond market, which is underdeveloped and dominated by the National Government. It outlines a two-phase road map: Phase I focuses on laying foundations through capacity building, defining green investments, and establishing governance; Phase II focuses on market expansion by diversifying issuers, reducing costs, and mitigating currency risks. The document highlights significant potential in green portfolios across the real sector, cities, and development banks, while noting barriers such as a lack of domestic verifier expertise and a concentrated demand for high-credit-rated securities.

The green bond market experienced rapid growth between 2013 and 2016, with total emissions reaching USD 81 billion in 2016. The market is increasingly dominated by the private sector, with corporate and bank emissions rising from less than 1% in 2010 to 66% in 2016. While mitigation projects—specifically clean energy, energy efficiency, and low-carbon transport—receive approximately 75% of funds, financing for adaptation grew from less than 1% in 2011 to 5% of total emissions, driven largely by US municipalities. China emerged as a leading market, projecting to be the largest globally. To support the Paris Agreement, the Climate Bonds Initiative targets annual green bond emissions of USD 1 trillion by 2020. The document recommends that governments implement national capital mobilization plans, apply international standards like the Green Bond Principles and Climate Bonds Standard, and develop national verifier networks to reduce market friction and prevent greenwashing.

The report highlights Indonesia's growing green bond market, which reached nearly USD 3 billion by October 2019, and the government's efforts to scale up blended finance to meet climate targets and sustainable development goals. It emphasizes the role of development finance institutions (DFIs) in de-risking projects and the importance of avoiding deforestation in green investments.

The document outlines the growth potential of the clean hydrogen market, noting that global demand could exceed 6% of total final energy consumption by 2050. It highlights Canada's competitive advantages in production due to its geology and renewable energy resources, while identifying barriers such as high costs and infrastructure gaps.

The report analyzes the FinTech ecosystem in East Africa, identifying key enablers such as high mobile penetration and gaps in traditional financial services. It details the value propositions of FinTechs in lending, payments, insurance, and investment management, while assessing the regional investment landscape. The document highlights a strong concentration of activity in Kenya and a significant reliance on foreign venture capital, particularly from the US and Europe. It also examines the role of partnerships between mobile network operators (MNOs) and banks, and identifies critical gaps in support infrastructure and regulatory clarity.

The report examines seven key credit innovations—scoretechs, invoicetechs, lending aggregators, telco-based lenders, pay-as-you-go (PAYG), peer-to-peer (P2P) lending, and edufintech—across South Africa, Nigeria, Kenya, Tanzania, and Rwanda. It finds that while digital metamorphosis is improving financial inclusion, credit access remains low, with domestic credit in sub-Saharan Africa at 39% of GDP. Telco-based lending is the most successful model in East Africa, while South Africa leads in MSME financing innovations. However, many models face challenges including high non-performing loans (NPLs), high cost of capital, and a lack of patient capital, particularly in education finance. The report recommends transitioning to hybrid customer acquisition models, leveraging blockchain to reduce fraud, and establishing more supportive regulatory sandboxes.

FSD Africa's 2025-2030 strategy aims to transform the continent's financial system to better support sustainable growth and climate resilience. The agency intends to mobilise domestic private capital—estimated at $2.4 trillion—to address gaps in energy transition, climate adaptation, and SME financing. Key implementation plans include the creation of four Centres of Expertise and a Catalytic Transactions Team to build a pipeline of bankable green projects. The strategy sets specific targets, including adding 1,500 megawatts of energy capacity and creating or protecting 200,000 jobs.

The document provides a comprehensive overview of Islamic finance, detailing its foundational Sharia principles, key contracts, and the global landscape of Islamic banking, capital markets, and Takaful. It specifically addresses the under-utilization of Islamic finance in Africa—where assets represent only about 1% of the global total despite a large Muslim population—and offers strategic recommendations for governments to overcome regulatory, fiscal, and capacity barriers to foster economic growth and financial inclusion.

The document examines the growth of embedded solar generation in South Africa, which reached over 3.2 GW of installed capacity in 18 months. It compares four primary procurement models: outright purchase, commercial debt, solar Power Purchase Agreements (PPAs), and embedded generation leasing. While outright purchases offer the best long-term return on investment, PPAs and leasing are increasing in popularity—accounting for 20% to 30% of new commercial and industrial projects—due to their ability to reduce upfront costs and system performance risks. The brief also details specific financial incentives, including the 12B tax allowance and feed-in tariffs, and provides a decision framework for businesses to select the most appropriate financing model based on their capital availability and risk appetite.

The document examines the deployment of container-based sanitation (CBS) in Cape Town, where the number of informal households is projected to reach almost 900,000 by 2040. It details the current use of portable flush toilets (PFTs) and shared container toilets, noting that while communities generally accept these as alternatives to full-flush systems, there are significant needs for improved durability and more reliable servicing. The brief also explores the potential for a circular economy by beneficiating excreta into products like fertilizers or fuel, highlighting regulatory shifts such as the 2019 liquid waste landfill ban and new organic waste treatment standards that may reduce barriers for local providers.

The document outlines energy efficiency (EE) strategies for pumps and motors in South African wastewater treatment works, noting that pumping can account for 4% to 30% of a facility's energy use. It categorizes interventions by payback period and energy savings potential, ranging from no-cost operational adjustments to capital-intensive retrofitting. Potential energy savings from these combined interventions can exceed 50%. The factsheet also details various financing options, including municipal budgets, grants, concessional loans, and energy performance contracts, to support the deployment of these technologies.

The document provides a high-level analysis of South Africa's carbon credit and REC markets, highlighting a significant supply deficit in the compliance market and the challenges of high project development costs. It details the transition to mandatory carbon budgets and the influence of the EU's Carbon Border Adjustment Mechanism (CBAM) and Article 6 of the Paris Agreement on the domestic landscape.

The Western Cape has a potential wheeling market of up to 1,600 MW of new renewable energy, representing an investment opportunity of up to R25.6bn. While wheeling allows customers to purchase power from independent power producers (IPPs) via existing grids, its uptake is hindered by limited municipal capacity and the requirement that municipalities be in good financial standing with Eskom. To address these barriers, Eskom is piloting 'virtual wheeling', expected to launch in early 2025, which allows municipal customers to access energy from Eskom-connected IPPs without waiting for municipal readiness. Current wheeling in the province is limited to a few local municipalities, including the City of Cape Town, George, and Swartland. The document highlights that wheeling can provide significant cost savings and price stability for businesses through bilateral power purchase agreements (PPAs), though long-term financial models should account for potential future decreases in daytime energy tariffs.