Search Climate Insights Directory

The report analyzes climate finance in Kenya's arid and semi-arid lands (ASAL), specifically in Turkana, Elgeyo Marakwet, Narok, and West Pokot. It finds a significant misalignment in funding, with over 60% of climate finance directed toward mitigation despite the high vulnerability of these regions to climate-induced droughts and floods. The study identifies severe funding gaps, where actual budgetary allocations for climate action in some counties are as low as 2% to 9% of estimated needs. Key barriers include weak institutional capacity, fragmented governance, and limited access to formal financial markets. The report recommends strengthening county-level technical skills, promoting innovative financing like green bonds and blended finance, and mainstreaming climate priorities into local budgeting to improve adaptation outcomes.

The report examines the transition from 'localized' to 'locally led' anticipatory action within the IFRC Network. It identifies that while the network's global reach and National Societies are significant strengths, progress is hindered by political factors, centralized decision-making, and donor risk aversion. The document argues that scaling locally led action requires navigating trade-offs between global standardization and local autonomy, advocating for more flexible, long-term funding and the integration of indigenous knowledge into technical forecasting models.

The document argues that the AfCFTA can mitigate Africa's youth unemployment crisis by fostering a regional market for greentech goods and services. It highlights a significant trade deficit in green goods and suggests that localising production—supported by tax incentives, digital skills training, and the revitalisation of Indigenous environmental practices—can create millions of jobs. While carbon-intensive sectors may lose up to 4.2 million jobs by 2050, the energy transition could create up to 12 million jobs in the same period, provided that regulatory barriers are removed and investment is facilitated.

The report assesses gender disparities across five African nations to inform the investment strategy of the $200m Novastar Ventures Africa People and Planet Fund III (NV III). It identifies pervasive gender-based violence, gaps in STEM education, and the disproportionate impact of climate change on women in agriculture and informal employment. To address these, NV III commits to the 2x Criteria, targeting specific gender quotas for employees, management, consumers, and suppliers within its portfolio companies, while implementing a Gender Lens Investment Policy.

The document describes how securitization—pooling assets like loans into securities via special purpose vehicles—increases liquidity and capital recycling for low-carbon transportation, buildings, water, and renewable energy. It details commercial and public examples, the role of technical assistance, and the capacity requirements for issuers and regulators to scale these instruments.

A SAVi assessment indicates that investing USD 41.7 million in the restoration and conservation of mangroves and wetlands in Mozambique's Bons Sinais, Zambezi, and Limpopo estuaries could generate up to USD 537.5 million in net benefits. The project aims to restore 7,500 hectares of wetlands and 3,800 hectares of mangroves, while conserving 30,000 hectares of coastal ecosystems, providing a return of nearly USD 14 for every USD 1 invested. These interventions are designed to reduce flood and pollution damages by over USD 120 million and benefit approximately 211,000 people directly and over 1 million people indirectly.

The document highlights a critical adaptation finance gap in Africa, noting that the continent requires between $187–359 billion annually but faces an 80% shortfall in adaptation investment. It identifies the South African G20 presidency as a strategic opportunity to shift climate finance from debt-creating loans to grants and concessional funding. Key recommendations include scaling locally led adaptation, implementing debt-for-climate swaps, and reforming Multilateral Development Banks (MDBs) to ensure at least 50% of climate finance for African Least Developed Countries is provided as grants or highly concessional finance.

The policy brief distinguishes between incremental and transformational adaptation, highlighting that the latter is necessary when climate impacts cross viability thresholds. It identifies significant barriers to transformational adaptation in Africa, including financial gaps, weak legal frameworks, and a lack of standardized metrics. The authors recommend that South Africa's G20 presidency champion the development of adaptation scenarios, the enactment of climate change laws, and the creation of an Africa-based framework for measuring systemic impact to move beyond reactive, short-term climate responses.

The document analyzes the current state of Climate-Smart Agriculture (CSA) in Africa, identifying systemic barriers such as fragmented policies, significant funding gaps, and the exclusion of smallholder farmers. It highlights opportunities in digital technology, indigenous knowledge, and private sector engagement. To address these, it recommends that the South African G20 Presidency champion blended finance mechanisms, strengthen regional collaboration through Regional Economic Communities (RECs), integrate traditional knowledge into policy, improve monitoring and evaluation systems, and accelerate the adoption of agri-tech.

The briefing criticizes multilateral development banks (MDBs) for continuing to fund large-scale, centralized energy projects that the authors categorize as 'false solutions,' such as nuclear, carbon capture, and fossil gas. It argues these investments undermine equity and delay the transition to sustainable energy. Using case studies from Africa and Asia, the document recommends that MDBs prioritize decentralized renewable energy, reform climate finance frameworks, and ensure the Free, Prior, and Informed Consent of Indigenous peoples.

Burhani Solar installed four off-grid solar PV systems (three 7 kW and one 16 kW) with lithium battery storage for Beach Management Units in Kenya. Funded by the European Union as part of the Go Blue Programme, the project provides reliable power for cold chain infrastructure, water purification, and solar lanterns for women fish traders, transitioning operations from diesel to 100% renewable energy.

The Nature-Based Infrastructure (NBI) transformation program in Kisumu, Kenya, integrates agroforestry, sanitation, and fisheries to restore the Lake Victoria basin. A Sustainable Asset Valuation (SAVi) assessment indicates that an integrated approach could generate USD 940 million in net benefits over 26 years, yielding approximately USD 3 for every dollar invested. Key economic drivers include USD 480 million in avoided health costs through improved sanitation and USD 62.85 million in carbon valuation, which exceeds the program's capital expenditures.

The document examines how the Investor-State Dispute Settlement (ISDS) system enables foreign investors, particularly from the fossil fuel industry, to claim compensation from states for climate policies. It highlights the 'regulatory chill' effect, where the threat of costly awards—which have increased from an average of $25 million (1994-2003) to over $250 million (2014-2023)—deters governments from phasing out fossil fuels. The briefing references July 2025 advisory opinions from the International Court of Justice and the Inter-American Court of Human Rights to affirm state duties to regulate polluting conduct. It concludes that current reform efforts, including the EU and UK withdrawals from the Energy Charter Treaty (ECT), are insufficient due to sunset clauses and inadequate carve-outs, and recommends coordinated UN-level action to eliminate ISDS threats to climate and human rights obligations.

Carbon Neobank is a digital financial vehicle designed to bridge the USD 331 billion SME finance gap in Africa by integrating international carbon markets into business banking. Headquartered in Kenya, it offers three primary products: receivables loans, unsecured working capital loans, and carbon-backed term loans, targeting a USD 1 billion total addressable market. The vehicle utilizes a digital-first model, leveraging a partnership with Ecobank for geographic reach across 33 countries and employing digital Measurement, Reporting, and Verification (dMRV) to monetize emission reductions. A USD 10.8 million pilot is planned to demonstrate the model's ability to mobilize private capital and deliver climate outcomes, including an estimated 6.097 million tCO2e in emission reductions over 10 years. The bank specifically targets the agricultural sector and women-led businesses to promote an inclusive green transition.

Climate finance for emerging markets and developing economies (EMDEs) surpassed USD 1 trillion in 2023, with 80% mobilized domestically. Mitigation finance dominates, accounting for 92% of flows (USD 979 billion), while adaptation finance reached USD 48 billion. China is the primary driver, providing 64% of total EMDE flows. Significant gaps remain, with annual mitigation needs estimated at USD 3.86 trillion. The report recommends strengthening domestic enabling environments, improving the quality of international finance, and increasing data transparency to scale investment.

Friends of the Earth International argues that environmental rights are human rights and should form an autonomous basis for corporate liability in the UN Legally Binding Instrument. The document provides textual suggestions to ensure TNCs are obligated to prevent environmental harm, phase out emissions, and provide full ecological restoration, moving beyond voluntary due diligence and ESG frameworks.

The policy brief by Friends of the Earth International advocates for the integration of explicit environmental and climate obligations for transnational corporations (TNCs) into the UN's legally binding instrument. It argues that the right to a clean, healthy, and sustainable environment is a recognized human right, as established by UN General Assembly Resolution A/RES/76/300 and various regional courts. The document provides specific text proposals to ensure TNCs are held legally accountable for environmental damage, biodiversity loss, and climate change, moving beyond procedural due diligence to substantive obligations of result, including the total elimination of climate emissions across value chains and full ecological restoration.

The report examines the role of securitisation in developing African capital markets, noting that while South Africa has a mature market, other sub-Saharan regions remain nascent. It identifies significant barriers, including fragmented legal and tax frameworks, a lack of a 'ratings culture', and limited understanding among financial institutions. Despite these challenges, the study finds a substantial supply of securitisable assets in banking, microfinance, and fintech sectors. It recommends a holistic regulatory approach, the use of anchor investors from DFIs and MDBs, and the adoption of scalable structures like warehouse facilities to mobilise private capital and bridge the private credit gap.

The report examines eight innovative financial instruments—including the Adaptation Benefit Mechanism, biodiversity credits, carbon taxes, carbon trading, credit guarantees, debt-for-nature/climate resilience swaps, pooled investment funds, and sovereign green/sustainability-linked bonds—to bridge the climate finance gap in developing countries. It identifies common barriers such as limited institutional capacity, lack of robust project pipelines, and underdeveloped local capital markets. The document emphasizes that while these instruments can signal a government's commitment to climate action, their success depends on a supportive enabling environment characterized by effective leadership, clear taxonomies, and robust climate data. For least developed countries (LDCs), the report suggests a phased approach, first strengthening basic financial and legal prerequisites before focusing on 'climate investability'. It concludes with specific recommendations for donors and development partners to provide technical assistance, anchor investments, and pilot projects to scale up private sector mobilization.

The document evaluates the Guided Trade Initiative (GTI) as a 'proof of concept' for the AfCFTA, analyzing the experiences of Ghana, Kenya, Mauritius, Tunisia, Nigeria, and South Africa. It argues that while tariff liberalisation is a start, full implementation requires addressing deep structural barriers, including inadequate productive capacity, infrastructure deficits, and non-tariff barriers (NTBs). The brief highlights that South Africa and Nigeria's participation is critical for scaling the initiative, but both face internal constraints like energy bottlenecks and fiscal gaps. It concludes that the focus must shift from endorsing the agreement to delivering on productive capacity and trade-enabling infrastructure to achieve projected GDP gains of $1.4 trillion.