Harnessing green finance for net-zero: strategies and innovations in the Middle East and North Africa region

Usman Bashir and Muntazir Hussain

Abstract

Greening the financial system is of the utmost importance in facilitating the shift toward a net-zero carbon economy. In order to achieve this, regulators, policy makers and financial institutions are actively working toward the development of green products and implementing incentives that promote green finance. Within the Middle East and North Africa (MENA) region, various challenges are being addressed by a range of initiatives and recommendations. This study highlights that drastic reductions in emissions are imperative to effectively combat climate change. Mobilizing capital, both from the public and private sectors, is an urgent requirement in this regard. Delaying this transition can result in escalated costs and significant risks that may destabilize both our environment and our economies. Therefore, it is of the utmost importance to effectively “green” the financial system and provide the necessary support to facilitate the transition efforts of real economies.