Despite having ambitious NDCs, countries in the region face major hurdles to NDC implementation that include limited access to climate finance and inadequate policy and regulatory frameworks. The gap in climate finance underscores the necessity of increasing overall climate finance flows to the region.

This policy brief discusses the importance of scaling up private sector finance in order to augment and leverage public sector climate finance and investments. It identifies barriers to private sector investment which include uncertainty around different sectors, lack of finance taxonomies, and perceived investment risks.

The brief also puts forward comprehensive recommendations for governments in the region to attract and strengthen private sector participation in climate action. These include policy de-risking, regulatory framework improvement, scaling up finance through incentives and support mechanisms, awareness raising, capacity building, and fostering partnerships between public and private sectors. These measures can unlock the potential of private finance to achieve NDC targets, thereby contributing to global climate goals and sustainable development.