Using domestic financial and fiscal policy to mobilise private adaptation finance in ACP countries
The countries of the Africa, Caribbean and Pacific (ACP) regions are some of the most vulnerable to climate change. Scaling up finance for climate adaptation is critical, particularly across the diversity of private actors from households, through micro-small medium enterprises to corporations, financial institutions and investors; all of which are influenced by public policy levers. Mobilising finance to build resilience to climate change is critical for the future economic prosperity of ACP countries and will require activating the expertise, innovation, and investment of the private sector alongside the breadth of the toolkit of the public sector.
This online event examines the potential for financial policy and regulation and fiscal policy in ACP countries to better steer domestic private capital towards climate change adaptation, and away from investments that could introduce greater climate change vulnerability. It will outline how why and how fiscal policy (such as budget spending, taxes, and price support) can support different actors to invest in adaptation actions. It will also outline the role of financial policy and regulation in guiding private finance flows for adaptation, in particular looking at principles for greening the financial system, guidance on green bonds/loans, taxonomy and mandatory climate risk disclosure policies.
The online event presents the findings from a report on this topic by the ICR Facility – the third in a series of papers on how ACP governments best enable private sector investment in climate change adaptation. The event also includes contributions from experts across the field to share lessons and consider challenges of re-examining these incentives including political economy, deep links between sectors and socio-economic objectives, that support policymakers in understanding the next steps towards conducive domestic policy environments.