CAREC Institute Release: New Study Under CTTN Research Grants Program 2025 Explores Green Finance as Catalyst for Regional Transition

The CAREC Institute (CI) has released a new research report under the CAREC Think Tank Network (CTTN) Research Grants Program (RGP) 2025, focusing on the critical role of green finance in driving the green transition across the CAREC region. Employing an entropy-based index for quantitative assessment, the report examines the growing significance of green finance as a catalyst for shifting the CAREC region, which has traditionally been dependent on fossil fuels and carbon-intensive infrastructure, toward low-carbon, climate-resilient development. It addresses the pressing need for such a transition amid mounting climate risks, energy insecurity, and global decarbonization commitments.

Key findings highlight that while external funding from Multilateral Development Banks, through concessional loans, blended finance and capacity-building initiatives, has provided crucial support, the overall investment scale remains inadequate to meet the region’s needs, which are estimated to exceed USD 400 billion by 2030. The report also underscores the value of Public-Private Partnerships in advancing green infrastructure.

To bridge the green finance gap and facilitate an inclusive, just and sustainable transition, the report puts forward policy recommendations, including formulating clear national green finance strategies, expanding green taxonomies, strengthening domestic capital markets, and enhancing regional cooperation platforms such as the CAREC Green Energy Alliance.

About the CTTN Research Grants Program

The CAREC Think Tank Network (CTTN) Research Grants Program (RGP) provides support for research projects among think tanks and academic institutions in the CAREC region. The program promotes collaboration across countries and supports evidence-based policy recommendations to address regional challenges.