Fostering regional approaches for informing climate policy and finance

The Arab Region is highly vulnerable to climate change. Threats like rising temperatures, shifting rainfall patterns, and more frequent droughts, floods, and sandstorms endanger its water, agriculture, energy security, and livelihoods. These risks undermine sustainable development, economic stability, and social well-being.

In response, 21 Arab States have ratified the Paris Agreement, pledging to limit temperature rise and pursue an inclusive transition to low-carbon, climate-resilient economies. However, the region struggles to finance the adaptation projects it desperately needs, as they often lack immediate returns. This highlights an urgent need for data-driven tools, common taxonomies, and science-based approaches to build stronger project proposals, unlock green/climate finance, and foster regional cooperation.

Our approach

This initiative builds capacity and shares knowledge to help Arab countries design and finance climate-resilient development strategies. It focuses on two core pillars to help Arab countries meet their nationally determined contributions, access global climate funds, and progress towards the SDGs:

1. Climate change impact assessment to inform adaptation and mitigation strategies

   ESCWA seeks to strengthen the science-policy interface by ensuring policies and projects are informed by robust climate data, modelling, and vulnerability assessments. This includes: 

• Regional climate modelling and impact assessment
• Country-specific climate projections and fact sheets
• Workshops and online training on adaption planning and sustainable energy transition. 

2. Green / Climate Finance 

   ESCWA seeks to build institutional capacity to tag, track, and mobilize green/climate finance through:

• Hosting consultations on sustainable green/finance taxonomies
• Developing a common regional taxonomy for green/climate finance
• Providing tools, guidance notes, and peer learning platforms to attract domestic and international green/climate investments
• Conducting a series of webinars on "Developing a Green/Climate Finance Taxonomy for the Arab Region". 

Our partners

• The Arab Fund for Economic and Social Development (AFESD) provides funding, while the ESCWA Arab Centre for Climate Change Policies (ACCCP) is responsible for implementation.
• The government of Sweden and Swedish Meteorological and Hydrological Institute (SMHI) are involved through RICCAR climate modelling outputs.
• the Arab Coordination Group of Funds supports the development of the regional taxonomy for green/climate finance
• The multilateral developments banks, finance ministries, central banks and financial regulators help integrate green/climate finance considerations into polices and investments. 

Our activities

This project's key deliverables include producing country-specific climate impact fact sheets and organizing workshops on regional climate modelling and the sustainable energy transition. It also develops an online training module for adaptation tools. To mobilize investment, the project conducts consultations to foster a common regional green/climate finance taxonomy and establish a knowledge platform, supported by technical guidance and policy briefs.