In many regions, especially sub-Saharan Africa, women are disproportionately impacted by the adverse effects of climate change. Despite their critical role in managing natural resources and supporting their families, they are often excluded from vital decision-making processes and lack access to financial resources that could help their communities adapt to a changing climate.

Financial mechanisms designed to address climate change frequently overlook the specific needs of women, missing opportunities to strengthen communities that rely on gender-responsive solutions. To achieve sustainable growth and effective climate resilience, integrating gender considerations into climate finance and green finance is essential.

The importance of empowering women in climate action

Statistics paint a clear picture of the gender gap in climate finance. Oxfam’s 2020 Climate Finance Shadow Report highlighted that only 20.5% of bilateral climate finance was directed to the least developed countries, where women are most vulnerable. Worse, just a third of these projects incorporated gender equality. By 2023, the situation had barely improved, with only 2.9% of climate-related development finance focused on gender equality as a principal objective.

This gap underscores the need for targeted green investments that directly address the barriers women face in accessing financial tools. Gender-inclusive finance holds the potential to transform lives, fostering economic sustainability and improving communities' capacity to manage climate risks.

Case studies of gender-inclusive finance in action

There are powerful examples of how women are driving climate resilience, particularly in Africa. One such case is the women-led reforestation efforts in Kenya's Mau Forest. Women in this region are applying both traditional and modern environmental practices to restore degraded lands, improving food security and household incomes. Through the establishment of tree nurseries and kitchen gardens, these women not only contribute to environmental sustainability but also create income opportunities by selling seedlings to local farmers and governments.

This example demonstrates the importance of including women in climate solutions. Should they be given access to sustainable investments, women would be at the forefront of creating lasting environmental and social change. Their contributions could help build stronger, more resilient communities, where climate adaptation is achieved through practical and innovative solutions.

Challenges and opportunities in gender-inclusive finance

Despite the success of many women-led initiatives, financial exclusion remains a significant challenge across sub-Saharan Africa. For example, only 38% of women own land, compared with 51% of men. Addressing this disparity requires a comprehensive approach, including simplified loan processes and financial literacy programmes that cater to the unique needs of women in vulnerable regions.

At the same time, efforts to close the financial gap for women must be aligned with broader climate change adaptation strategies. By empowering women with the tools and resources to engage fully in the economy, we can unlock untapped potential that not only enhances climate resilience but also fuels sustainable economic growth at the national level.

Future prospects for gender-inclusive climate solutions

In South Africa, the success of black economic empowerment (BEE) policies offers valuable lessons for integrating gender considerations into climate action. These policies achieved progress through clear metrics and incentives for private sector engagement in affirmative action. Similarly, gender-responsive climate finance should be built on a foundation of measurable goals and financial incentives, ensuring that women are not just participants but leaders in climate resilience efforts.

This approach would help address the historical neglect of gender in climate policies and promote climate change solutions that are both inclusive and effective. The importance of inclusive solutions cannot be overstated, as neglecting gender considerations in climate mitigation efforts will not only widen social inequalities but also weaken global efforts to combat climate change.

Supporting inclusive climate solutions

The inclusion of women in climate finance is no longer just an ethical imperative – it’s a practical necessity for achieving our global climate goals. To build a low-carbon economy and foster economic sustainability, we must ensure that women, particularly in vulnerable communities, have access to the financial tools they need to thrive.

Governments, businesses, and financial institutions must work together to create a system that encourages gender equality in climate finance. This includes clear, measurable goals and accountability mechanisms to ensure that progress is tracked and celebrated. Climate investment funds, renewable energy projects, and green bonds are critical tools in this journey, but they must be deployed with gender at the forefront of their design and execution.

By prioritising gender equality in environmental finance, we can create a more inclusive and resilient global economy. Women are already paving the way in environmental protection and climate risk management, but they need financial support to continue driving progress. Through the power of gender-responsive finance, we can build a future where women and men alike are empowered to craft a sustainable world for generations to come.

As we confront the challenges of climate change, let us remember that the inclusion of women is not just beneficial – it’s essential to our collective success.