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Africa Economic Brief - Why Africa Needs Green Bonds
The objectives of the brief are to highlight developments in the nascent global green bonds market and their relevance to Africa, to present arguments for greater participation of financial institutions within the continent and to make proposals on how this can be accelerated. The information presented in the paper is based on literature review and analysis of data on climate finance. It is estimated that that the global market for green bonds is expected to reach US$100 billion by the end 2015. In the last four years, about US$2.5billion has been mobilized for development in Africa through the issuance of green bonds. This makes it a parallel option for financing developments in climate change mitigation and adaptation. The mechanism for green bonds which is increasingly incorporating standardization, transparency monitoring and reporting with the participation of responsibility minded investors also makes it attractive for Africa.