CAC: Green Finance Grew by 300% in Middle East, North Africa

Green and sustainable financing in the Middle East and North Africa region has increased by more than 300% to $18.6 billion in 2021, up from $45 billion in 2020.

However, according to the report of the Council of American Chambers (CAC) in North Africa and the Middle East, there is still about $230 billion that needs to be collected annually in the Middle East and North Africa region to achieve the United Nations Sustainable Development Goals.

This gap confirms the need for new strategies, financial system infrastructure, and enabling mechanisms to mobilize public and private financing toward sustainable investments.

The report issued by the CAC indicated that the Middle East and North Africa region is particularly vulnerable to climate change, particularly in the form of higher temperatures, lower precipitation, and rising sea levels.

Threats such as food and water insecurity have prompted governments to place sustainability at the heart of their economic and investment strategies.

The report indicated that these strategies differ, of course, across the region, as oil-exporting countries pursue ambitious policies to decarbonize and diversify their economies to reduce their dependence on income from fossil fuels.