Green Finance in Sudan: Policy Frameworks, Challenges, and Global Comparisons
Prof. Dr. Yahya Omar Adam
University of Khartoum, Faculty of Forestry, Department of Forest Technical Management
Introduction
Green finance is considered one of the modern and important tools for achieving sustainable development, as it aims to direct financial resources toward projects and activities that contribute to environmental protection, mitigating the effects of climate change, and achieving a balance between economic growth and environmental sustainability. This type of financing relies on multiple mechanisms such as green bonds, loans directed to environmentally friendly projects, green sukuk, and others. In the Sudanese context, the concept of green finance faces several challenges; however, it is gaining increasing importance in light of the country’s severe vulnerability to climate change, especially in sectors such as agriculture and water, in addition to its international commitments in the field of climate and sustainable development.
Policy Frameworks for Green Finance in Sudan
International Commitments and National Strategies
- International Agreements: Sudan has ratified a number of international agreements related to climate, such as the United Nations Framework Convention on Climate Change (UNFCCC) and the Kyoto Protocol. It is working to strengthen its commitments through the submission of the Nationally Determined Contributions (NDC) document, which targets adaptation and mitigation of climate change impacts.
- National Strategies: Sudan has an institutional policy framework related to climate through the Higher Council for Environment and Natural Resources, which serves as the nationally accredited entity for dealing with international funds such as the Green Climate Fund (GCF), which provides support to a number of climate projects in the country.
Internationally Supported Projects
Through the Green Climate Fund, projects have been approved and financed with the aim of building the resilience of local communities and enhancing their capacities to confront the impacts of climate change, particularly in agriculture, water, and food sectors. Millions of rural residents across multiple states have benefited from these projects.
Challenges Facing Green Finance in Sudan
1. Weak Regulatory and Policy Frameworks
Despite the existence of international commitments, Sudan still lacks a comprehensive and integrated policy specifically dedicated to climate and renewable energy. International databases highlight weak policy coverage in sectors such as renewable energy and climate change compared to other countries.
2. Limited Domestic Financing
A significant part of the challenges stems from the absence of strong national financial instruments such as green bonds or advanced financial markets, in addition to weak institutional and financial capacities within local institutions and banks. This hinders the transformation of political commitments into actual investments in green projects.
3. Economic and Social Crises