Green Equity

With the world facing a climate crisis, urgent action is required in ensuring adequate levels of climate-compatible finance to support mitigation and adaptation in the Global South. In this context, green equity approaches are gaining popularity among publicly-backed financial institutions such as the International Finance Corporation (IFC) or the Green Climate Fund (GCF). The investment shift away from fossil fuels towards greener solutions is indeed welcome. However, instead of creating truly green outcomes for local communities and their environment, so-called green equity investments can also perpetuate an extractive and exploitative development model. This dossier explores what needs to improve in order for green equity to become a powerful instrument to support a green and socially inclusive transformation.