DAR ES SALAAM, Aug. 18 -- TANZANIAS aspiration to become a middle-income, climate-resilient and industrialised economy depends not only on government policies but also on the ability of financial institutions to mobilise capital for sustainable development.

As climate change continues to threaten agriculture, water resources, energy supply and infrastructure, the question is no longer whether Tanzania should embrace green finance, but whether its banking sector is ready to become a catalyst for the countrys green economic transition. Banks occupy a unique position in the economy.

They influence investment decisions by determining which projects receive financing and under what conditions.

If commercial banks prioritise investments in r...