What is green finance?
It is a term that is used increasingly in many countries and that refers to a number of institutional policies and agreements to attract private capital investment to green industries. Green finance can adopt a variety of formats, such as green bonds, green loans, green insurance and other financial derivatives. To sum up, green finance is a way of accelerating the reassignment of capital to carbon-efficient assets, as well as unlocking new sources of climate and socially just finance.
How does green finance support climate action?
Green finance has the potential to escalate compliance with the Paris Agreement on Climate Change and the sustainable development goals by tackling existing barriers. The Paris Agreement is the biggest binding agreement on climate change and establishes a global action plan to limit global warming. Transparency on organizations carbon and climate impact helps to address the information asymmetry between investors and the real economy by offering data in real time at the level of assets.
What is physical climate risk?
Physical climate risk is the economic costs and financial losses resulting from the increasing severity and frequency of:
- Extreme climate change-related weather events (or extreme weather events) such as heatwaves, landslides, floods, wildfires and storms (ie acute physical risks);
- Longer-term gradual shifts of the climate such as changes in precipitation, extreme weather variability, ocean acidification, and rising sea levels and average temperatures (ie chronic physical risks or chronic risks); and
- Indirect effects of climate change such as loss of ecosystem services (eg desertification, water shortage, degradation of soil quality or marine ecology).
What is transitional climate risk?
The risks related to the process of adjustment towards a low-carbon economy. Transition risks are those that are caused by not responding to climate change and progressing the way businesses run. They include changes in public sector (generally government) policies, legislation and regulation, changes in technology and changes in market and customer sentiment, each of which has the potential to generate, accelerate, slow or disrupt the transition towards a low-carbon economy.
About our solution
Who uses Igugu Global?
Our clients include project sponsors, family offices, commercial banks, and investors.
Igugu Global Green Finance Marketplace - How does it work?
Our Green Finance Marketplace leverages climate and sustainability data to better originate and showcase a diverse selection of sustainable investment deals and offer these to investors i.e. a deal’s potential viability can be better assessed, market appetite determined and transaction promptly closed.
Why Igugu Global?
By selecting Igugu Global companies are able to communicate clear sustainability mandates, track and record and with transparent climate risk governance structures in place, and are better equipped to meet the new requirements, report accurately and make aligned investment decisions for the benefit of their members.
The initial step is reporting, but as important is regular and informed discussion, interrogation and analysis to better understand the “real-world” impacts, changes and drivers behind the numbers and the returns implications.
What countries are covered?
Countries: Nigeria, Ghana, South Africa, Botswana, Kenya, Tanzania, Mauritius, Seychelles, Egypt, Morocco
What asset-types are covered?
Green bonds, carbon assets, green mortgages and green deposits
What type of financing is available?
The Igugu Green finance directory is a live repository of financiers seeking climate aligned finance and investment opportunities. The capital providers bridge the spectrum from concessional and MDB risk financing to commercial capital providers.