Press Release

Toronto, January 9^th, 2023

The Climate Finance Readiness Index Report, published by Green For South and covering the Middle East, North Africa, and Türkiye region, recommends establishing a regulatory framework for financial institutions to manage climate risks, increasing market incentives to boost both the supply and demand for climate finance through investment in green initiatives, and increasing knowledge and awareness in this area. These measures are intended to promote the growth of climate finance in the region.

The Climate Finance Readiness Index assesses and tracks the preparedness of financial systems in the MENAT region to address climate risks and support climate action. This assessment is conducted using a scoring methodology that is based on 16 criteria organized into three main categories: the enabling environment and regulation, the volume of climate finance activity, and awareness. The methodology is tailored to the specific characteristics of each sub-region. The Index measures the readiness of financial systems in the MENAT region to tackle climate risks and support climate action.

The 2023 release of the Climate Finance Readiness Index Report for the MENAT region covers 14 countries: Morocco, Algeria, Tunisia, Egypt, Jordan, Lebanon, Iraq, Kuwait, Qatar, Bahrain, Saudi Arabia, United Arab Emirates, Oman, and Türkiye. These countries are divided into four sub-regions: North Africa, Middle East, Gulf Cooperation Council, and Türkiye.

The MENAT global Climate Finance Readiness Index Score for 2022 is 26.96%. This score shows that the region is, on average, at an early stage of implementation and that MENAT countries can be divided into two distinct clusters : Initiators and Implementers.

The Index methodology used to assess the readiness of financial systems in the MENAT region is based on three clusters, which are determined by the scores obtained. The first cluster, known as the initiators, includes countries that are in the early stages of establishing a climate finance system and have minimal or no regulation in place. These countries also have relatively small amounts of funding from international sources to address climate risks and issues. The second cluster, known as the implementers, comprises countries that are further along in the process of implementing a climate finance system and have binding regulations in place. These countries also have significant amounts of funding from international sources, as well as local financial institutions that have developed their own products and services to support climate action. The final cluster, known as the impactors, includes countries that are at a very advanced stage of implementation and have well-established regulations, significant funding from both local and international sources, and a high level of awareness. The report includes policy recommendations for these countries.

The CFRI Report 2023 is published by Green For South Inc., a specialized consulting firm in sustainable, green and climate finance based in Toronto and Casablanca. The next release of the report would have additional assessment criteria and data collected to improve the accuracy of the scoring methodology.

For further information about the report, kindly contact the authors:

Dr. Wael Mohamed AAMINOU, wael@greenforsouth.com

Dr. Ahmed TAHIRI JOUTI, a.tahiri@greenforsouth.com

To Download the report :

https://greenforsouthcom.wordpress.com/climate-finance

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