A report from the World Bank paper estimates that, globally, up to 132 million people will be pushed into extreme poverty by climate change by 2030.
In Ghana, the just released Ghana Country Climate and Development Report estimates that at least one million more Ghanaians could fall into poverty due to climate shocks, if urgent climate actions were not taken.
The report highlighted that incomes could reduce by up to 40 per cent for poor households by 2050 due to climate shocks.
Speaking at the launch of Rules for Green Bonds Rules by the Ghana Stock Exchange (GSE), the Regional Industry Director for Financial Institutions Group, Africa of the International Finance Corporation (IFC), Aliou Maiga, said while these numbers were concerning, it could be halved, if the whole world acted collectively.
He said this would require collective action and financing that prioritises greener and more sustainable development.
He noted that climate financing not only had an important development imperative, but also a significant market opportunity.
He said an IFC study showed that sub-saharan Africa needed US783 billion investment in climate finance by 2030.
Opportunity for growth
He said green finance presented the single largest growth opportunity for investors in emerging markets, noting that financial institutions could grow the share of their green lending portfolio from seven per cent to 30 per cent by 2030, increasing profitability and gaining market share.
“Green banking could enable outperformance by successful banks – not just by better managing environmental risks, but by being at the forefront of new business related to climate lending,” he stated.
He, therefore, commended the GSE for showing leadership in green and sustainability finance through the launch of the green bonds rules.“IFC is committed to working with Ghana’s stakeholders to facilitate investments that reduce greenhouse gas emissions and support climate change adaptation,” he stated.
Also at the launch, the Director General of the Securities and Exchange Commission, Rev. Daniel Ogbarmey Tetteh, said investing in green and sustainable future was both well timed and opportune.
He said sustainability was a broader topic that hinged on social, human, economic and environmental pillars, none of which could be ignored.