Banks can accelerate transition to low carbon green economy

If not acted upon, the climate change war may cost Kenya up to Sh7 trillion in the next decade, according to the Ministry of Environment. In addition, the State of the Climate in Africa report highlights that climate change could further lower gross domestic product (GDP) in sub-Saharan Africa by up to three per cent by 2050.

Human-driven environmental pressures have raised the risks of environmental degradation. In recognition of the threats posed by climate change, banks are emerging as shining lights in efforts to stem the tide and lead the transition of businesses towards a low carbon green economy through green financing. Through their resource allocation capabilities, banks and other financial institutions are now an indispensable cog in the war against climate change.