Carbon and Climate Finance Take Centre Stage in Africas Investment Future. File Courtesy
Climate change, loss of biodiversity and degradation of ecosystems have ceased to be mere environmental concerns. They form the core of how investors now look at risk, resilience and long, term returns with a special focus on emerging markets such as Africa.
Nature is the backing of huge parts of the world economy, providing the basis for water security, food systems, infrastructure and climate resilience. However, investments in the protection of these systems are still at a critically low level.
The UN Environment Programme (UNEP) says that the global biodiversity financing gap could reach USD 942 billion per year by 2030. Currently, the total global flow into nature is about USD 200 billion per year, with private capital making only a USD 35 billion contribution.
Private Capital is the Agent of Change in Carbon and Nature Markets
The private finance for nature has risen more than ten times over the last few years, from USD 9. 4 billion to over USD 100 billion. By following the present trends, the amount of investments might even grow to USD 1. 45 trillion by 2030.
Moreover, investment in carbon markets, nature, based solutions, and climate resilient infrastructures is now being considered as investing into interrelated themes.
New asset classes are developing in carbon, biodiversity, and climate adaptation, significantly changing how investors find value that holds up in the long term, especially in regions vulnerable to climate.
Africa’s high economic exposure to climate risks
Throughout the continent, natural capital is said to make up between 30 to 50 per cent of the total national wealth of many countries. In South Africa, for instance, the benefits of ecosystems that are in good condition are estimated at more than R275 billion (approximately USD 14 billion) a year, which is the equivalent of at least seven per cent of the GDP.
Recent floods in parts of Kruger National Park and continuous water shortages in the Western Cape have demonstrated how the destruction of ecosystems leads to economic losses, damage to infrastructure, and increased pressure on the public budget.
AGES 2026 is bankable climate solutions, focused
In light of the above, Africas Green Economy Summit (AGES) 2026 will commence with the Climate, Carbon & Nature Financing Academy on 24 February 2026 in Cape Town, before the main event from 25 to 27 February.
The Academy is set to discuss ways in which activities in the climate, carbon and environmental sectors can be transformed into financially viable ventures through market mechanisms such as carbon markets, green and blue bonds, debt for nature swaps and performance, linked finance.