What's Happening?
The Alliance for Financial Inclusion (AFI) is actively linking financial inclusion with climate action as part of its Inclusive Green Finance Project (Phase III). AFI provides a global platform for financial inclusion to central banks, financial supervisory
authorities, and finance ministries in over 80 developing markets and emerging economies. The project aims to develop innovative political strategies to combat climate change and adapt to its impacts. AFI members have reported 36 policy changes linking financial inclusion with climate action, contributing to the Paris Agreement and national climate targets. The project offers peer learning, resource-building, and public-private dialogue to ensure members can implement relevant national policy goals.
Why It's Important?
Integrating financial inclusion with climate action is crucial for achieving sustainable development goals (SDGs) and addressing climate change. By linking these two areas, AFI is helping countries develop strategies that not only promote economic growth but also ensure environmental sustainability. This approach supports the Paris Agreement and national climate targets, highlighting the role of financial institutions in driving climate action. The project also enhances the capacity of decision-makers, enabling them to implement effective policies that can lead to long-term environmental and economic benefits. This initiative underscores the importance of collaborative efforts in tackling global challenges.
