Evaluating institutional climate finance barriers in selected SADC countries

Abstract

Access to climate finance continues to inhibit the transition of southern African economies to a low-carbon, climate-resilient future. This is compounded by the region’s exposure to climate risks alongside several other factors, such as increasing population growth, high levels of inequality and unemployment, and limited fiscal resources. There remains only a high level of understanding of climate finance barriers across the region. The research provides an in-depth understanding of the institutional barriers that limit climate finance actors in selected southern African countries from mobilising greater climate finance flows and the drivers responsible for these barriers. At an operational level, institutions face significant challenges in developing vital track records that meet the necessary fiduciary requirements of climate finance sources. This challenge is exacerbated by the bureaucracy related to project approvals, stakeholder coordination (both internal and external) and institutional capacity and awareness. One of the primary barriers to the mobilisation of and access to climate finance for mitigation and adaptation in the region is the lack of clear policies and regulatory and legal frameworks or, where policies do exist, a lack of policy enforcement. The barriers presented in this research can be addressed by robust and decisive action by climate finance actors and the presence of an enabling environment that prioritises climate action. However, climate finance mobilisation will likely continue to lag if political will across the region on climate change is not increased in the short term.