Experts point EU Commission towards sustainable finance investment opportunities

The report is co-authored by Kenneth Amaeshi, Professor of Sustainable Finance and Governance at the Florence School of Transnational Governance, who joined the advisory group in September 2022.

 

Presented to the European Commission on 30 April, the report focuses on increasing resources from private capital to close the finance gap in the Sustainable Development Goals. The advisory group also comes up with recommendations on how to accelerate private funding for implementing the Green Deal and climate resilience in partner countries.

 

The group recommends a new model of strategic engagement to deliver the Global Gateway, focusing on agile and fit-for-purpose EU external financial support to trigger sustainable project development.

 

The expert group argues the EU should reduce risks for investors, and financing costs for beneficiaries, to bolster local capital markets.

 

Kenneth Amaeshi said: “We should reduce the risks for those who want to invest in sustainable projects in low- and middle-income countries. Uncertainty about investments put a break on development opportunities, which public donors like the European Union can mediate.”

 

The advisory group calls for support for small and medium enterprises and robust sustainability reporting. The experts also advise the European Commission to create a digital database with investment opportunities in low- and middle-income countries, making it easier to match investors with suitable projects.

 

The group also urges the European Commission to enhance the agility and capacity of its financial support, linking it closely to the high-level dialogue on sustainable finance and investments.

 

Overall, the recommendations aim to drive a just sustainable transition in low- and middle-income countries, covering sectors from infrastructure to health and education.

 

“Sustainable investment goes beyond the environment and climate change,” said Kenneth Amaeshi. “The expert group put a strong emphasis on social sustainability, or how investments impact people, too.”

 

Read the executive summary here.

 

Read the full report here.

 

Watch the Governance this Week episode on scaling up sustainable finance in low- and middle-income countries with Kenneth Amaeshi here.