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Climate Finance

Climate finance refers to financial resources and investment flows directed towards projects, programmes and policies that mitigate greenhouse gas emissions or help societies adapt to the impacts of climate change. The sector encompasses funding from public, private and alternative sources, including multilateral development banks, bilateral aid agencies, commercial banks, institutional investors and specialised climate funds. Climate finance supports activities such as renewable energy deployment, energy efficiency improvements, sustainable transport, climate-resilient infrastructure, ecosystem restoration and early-warning systems for extreme weather events. Developed countries have committed under the United Nations Framework Convention on Climate Change and the Paris Agreement to mobilise significant finance to assist developing nations in their climate responses. Key mechanisms include the Green Climate Fund, the Global Environment Facility and dedicated windows within regional development banks. The scale of climate finance has grown substantially over the past decade, driven by international commitments, falling technology costs and increasing recognition of climate risk by investors. In Africa, climate finance is critical for enabling the transition to low-carbon development pathways while building resilience to droughts, floods and other climate hazards. Blended finance structures, which combine concessional public funds with commercial capital, have become an important tool for mobilising private investment in climate projects. Tracking and reporting of climate finance flows remain challenging owing to inconsistent definitions and methodologies across institutions. The sector continues to evolve as governments, development finance institutions and private investors seek to align capital allocation with global climate goals and the transition to net-zero emissions.

Climate Finance Updates


ECA chief urges scaling up financing for water investments to drive growth, resilience, shared prosperity
28th May 2026 By: Natasha Odendaal

Africa must urgently close the financing gap for water and sanitation investments if the continent is to accelerate progress on sustainable development, climate resilience and economic... 


Join a panel of experienced practitioners with expertise spanning climate policy, sustainability, finance and carbon trading during a webinar on the future of voluntary carbon markets in Africa
Africa’s carbon market opportunity comes under the spotlight
27th May 2026

As climate finance gains momentum globally, the role of voluntary carbon markets in supporting Africa’s sustainability and development ambitions is attracting increasing attention. While carbon... 


African-led climate action essential to global progress
African-led climate action essential to global progress
26th May 2026

As droughts, floods and extreme weather events intensify across Africa, and geopolitical shifts reshape the global energy and development landscape, the African Climate Foundation (ACF) says the... 


Leslie Maasdorp, Hilina Legesse and British Embassy Addis Ababa development director Amanda McLoughlin
BII funds electric mobility in Ethiopia as it targets ‘frontier markets’ under Maasdorp
28th April 2026 By: Irma Venter

UK development finance institution British International Investment (BII) has committed $5-million in debt financing to Ethiopia’s Dodai as part of the company’s $13-million Series A round. A... 


AFC president and CEO Samaila Zubairu and DBSA CEO Boitumelo Mosako at the signing
AFC, DBSA partner on Infrastructure Climate Resilient Fund
24th April 2026 By: Sabrina Jardim

Infrastructure solutions provider Africa Finance Corporation (AFC) has announced a commitment from the Development Bank of Southern Africa (DBSA) to its $750-million Infrastructure Climate... 


BII CEO Leslie Maasdorp
UK development finance agency has unveiled its new strategy
23rd April 2026 By: Rebecca Campbell

UK development finance institution, British International Investment, has released its new five-year strategy. This has been developed to meet the challenges posed by a changing world, including... 


Industrial Spaces as hubs for decarbonisation and sustainable development
Industrial Spaces as hubs for decarbonisation and sustainable development
7th April 2026

Industrial emissions, including industrial energy use, account for roughly 30 percent of global GHG emissions. With rising energy demand driven by major global megatrends, the need for scalable and... 


An image of electricity and solar panels
Conference underscores importance of sustainability in a volatile world
24th March 2026 By: Tasneem Bulbulia

With global tensions at a breaking point and contributing to higher energy prices, South Africa should focus its efforts on sustainability, as this would be a “national defence” for the country,... 


Decarbonisation with development in mind
20th March 2026 By: Saliem Fakir

That developing countries need growth is unquestionable, and the construction of housing, roads, manufacturing, hospitals, schools and many other types of public and private infrastructure will... 


An image of Oscar Van Heerden
Grid stability, commitments key to just transition
20th March 2026 By: Lumkile Nkomfe

South Africa’s energy transition is on the right track, but structural grid constraints, slow climate finance deployment and the socioeconomic realities of the coal regions threaten to hinder... 


An image showing fossil fuel power generation infrastructure, along with renewable energy infrastructure
Clean energy transition provides opportunities for Africa but needs cooperation, money
6th March 2026 By: Rebecca Campbell

Southern Africa remains one of the world’s most climate vulnerable regions, pointed out Zimbabwean Energy and Power Development Deputy Minister Yeukai Simbanegavi at the recent Africa Energy Indaba... 


Wind turbines
Cutting carbon emissions requires green industrialisation
3rd March 2026 By: Rebecca Campbell

The pledges agreed at the COP 30 climate conference in Belem, Brazil, last year, brought real opportunities for Africa, emphasised UN Industrial Development Organisation (UNIDO) programme manager... 


Climate finance growing
26th February 2026 By: Rebecca Campbell

Global climate finance – public and private, international and domestic – had now reached a little over $1.9-trillion a year, Climate Policy Initiative (CPI) USA Global MD Dr Barbara Buchner has... 


Debt-for-nature swaps need commitment
24th February 2026 By: Rebecca Campbell

A financing instrument often referred to, regarding green development and conservation, is the debt-for-nature swap. But what is a debt-for-nature swap? This was the topic for a panel discussion on... 


Action counts, not declarations
20th February 2026 By: Saliem Fakir

An offhand remark caught my attention in the last stages of the Brazilian presidency of COP30. Ambassador André Corrêa do Lago, the lead negotiator, acknowledged that Brazil could achieve only so... 


An image of the spokespeople at the recent industry roundtable
Sustainable infrastructure strengthens S Africa’s future
13th February 2026

South Africa stands at a pivotal moment to redefine infrastructure as a vehicle for climate-resilient development, economic inclusion and measurable environmental impact, as nations and industries... 


Building South Africa’s Next Chapter Through Sustainable Infrastructure
Building South Africa’s Next Chapter Through Sustainable Infrastructure
14th January 2026

As nations and industries shift from ambition to execution in sustainability strategies, South Africa stands at a pivotal moment to redefine infrastructure as a vehicle for climate-resilient... 


UK's CFA calls for sustainability project proposals in South Africa
11th December 2025 By: Schalk Burger

The UK-funded technical climate assistance programme Climate Finance Accelerator (CFA) South Africa has launched a fourth call for proposals for low-carbon businesses seeking investment for... 


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