Unlocking Climate Blended Finance in the MENA Region: Insights from COP28

On Saturday, 2 December 2023, a significant session titled "Unlocking Climate Blended Finance in the MENA Region "took place at the Climate Finance Hub, COP28 Green Zone, Expo City Dubai. Developed by HSBC in partnership with UAE Independent Climate Accelerators (UICCA) and Ajman University, the event brought together key stakeholders to explore how blended finance can mobilize capital for climate initiatives in the Middle East and North Africa (MENA) region. Dr. Adnan Aziz from Ajman University’s Center for Excellence in Islamic Finance (CEIF) was among the notable participants, contributing valuable insights.

The session addressed the critical challenges faced by MENA in its journey toward sustainable development. Despite holding over $3 trillion in sovereign wealth capital as of 2021, the region has made limited use of blended finance structures, with only 89 recorded deals, amounting to approximately $25 billion. Discussions centered on how to unlock the vast potential of climate finance in MENA, particularly in pivotal sectors such as energy, agriculture, and water management.

A key takeaway from the session was the identification of regulatory barriers that are hindering climate blended finance investments in the region. Participants shared successful examples of innovative blended finance structures from other regions, offering valuable lessons that could be adapted to MENA’s unique context. The conversation also focused on how MENA’s sovereign wealth funds could play a more catalytic role in incentivizing private investments for climate projects.

The event showcased the collaborative efforts of financial institutions, academia, and independent climate accelerators in addressing these challenges. By bringing together expertise from across the region and beyond, the session marked an important step forward in promoting sustainable development through climate finance.

The initiative reflects HSBC’s and Ajman University’s shared commitment to supporting climate resilience and sustainability goals in MENA.