Climate risk regulation in Africaâ??s financial sector and related private sector initiatives

African Development Bank (AfDB)

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Abstract: This report seeks to assess the integration of climate- related risks in the prudential,financial,regulatory,and supervisory frameworks of a selection of African countries and identify potential levers to incentivise their internalisation. It does not explore broader green/sustainable f inance-related initiatives,like bonds and principles.To assess the status of climate risk integration,25 interviews were completed with 11 financial sector authorities covering 17 countries3 and 14 large private sector players (banks and insurers) from seven countries,covering 19 countries in total. (See list of interviewees in Methodology). The sample has been built to represent a diverse set of countries in terms of geographical areas and economic development.