KAPSARC – Why Does Sustainable Finance Not Flow into the Global South, Nov 2024

KAPSARC's report, "Why Does Sustainable Finance Not Flow into the Global South," examines the barriers that emerging markets and developing economies (EMDEs) face in accessing private sustainable finance for decarbonization efforts. Despite the significant growth in private sustainable finance globally, these funds are predominantly concentrated in advanced economies. The report identifies several challenges hindering EMDEs, including perceived higher risks, lack of robust financial markets, and insufficient policy frameworks. It emphasizes the need for tailored financial instruments, enhanced risk mitigation strategies, and stronger international cooperation to bridge the financing gap and support sustainable development in the Global South.