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Experts point EU Commission towards sustainable finance investment opportunities

The final report of the European Commission High-Level Expert Group on scaling up sustainable finance in low- and middle-income countries suggests ways to mobilise private capital for sustainable investments in EU partner countries.

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.”

Key recommendations include adopting a new strategic engagement model to implement the Global Gateway, reducing investment risks and financing costs to strengthen local capital markets, and supporting small and medium enterprises with robust sustainability reporting. The group suggests creating a digital database for investment opportunities, enhancing the agility of EU financial support, and emphasizing high-level dialogues on sustainable finance.

“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.

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