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Multilateral climate change financing in the developing world: challenges and opportunities for Africa

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  • Shingirai Mugambiwa

    (Research Associate, Department of Social Work, University of Limpopo, P Bag X1106, SOVENGA, 0727, South Africa)

  • Motshidisi Kwakwa

    (Lecturer, Department of Social Work, University of Limpopo, P Bag X1106, SOVENGA, 0727, South Africa)

Abstract

The Paris Agreement has highlighted the worldwide significance of adaptation. Many investors are considering the effects of climate change and resource scarcity when making decisions. Even while the whole amount of the environmental harm caused by climate change is yet unknown, recent scientific evidence is more frightening, and many governments are taking substantial measures to avert a calamity. The financial innovations and mechanisms created to ease the transition to a low-carbon economy will have far-reaching effects on markets, firms, intermediaries, and investors. Although economists have been working on the subject for decades, financial-economics professionals have only recently become interested in climate change. There has been a growing body of empirical and theoretical contributions in recent years that analyse the influence of climate risks on investment decisions for firms, financial intermediaries, and national governments, as well as the pricing and hedging of climate change risks. This study seeks to establish the role of multilateral climate change financing in the developing world vis-Ã -vis challenges and opportunities for Africa. Five determinants of the multilateral climate fund were established and they are namely; Reduction of Greenhouse gas emissions, Enabling Environments, Poverty and development linkages, Private investment and Public climate finance. Key Words:Adaptation, Climate change, Climate financing, Paris Agreement

Suggested Citation

  • Shingirai Mugambiwa & Motshidisi Kwakwa, 2022. "Multilateral climate change financing in the developing world: challenges and opportunities for Africa," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 11(9), pages 306-312, December.
    • Handle: RePEc:rbs:ijbrss:v:11:y:2022:i:9:p:306-312
    DOI: 10.20525/ijrbs.v11i9.2085
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    References listed on IDEAS

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