Enhancing investment flows to emerging and developing economies: Rethinking green macroprudential regulations
Despite rising global climate investment, capital is not reaching emerging and developing markets (EMDEs). Growing evidence shows current Basel III global banking rule interpretations unintentionally discourage EMDE lending by underrecognising credit enhancement and blended-finance tools. Drawing on a Queen Mary University analysis of 40 countries, this report assesses climate risk transmission and how proportionate risk treatment can unlock climate finance without undermining prudential integrity.
