A feasibility study of December 2024 describes green finance in Malawi as nascent. The Reserve Bank issued guidelines on climate-related and environmental financial risks for banks in October 2024, a Climate Change Fund exists in regulation but was not yet operational in 2025, and a Carbon Market Framework was adopted in July 2025. No green bond had been issued by the end of 2024, and international funds such as the Green Climate Fund and the Adaptation Fund finance adaptation projects in agriculture.
7.1
What is in force
The Reserve Bank's Guidelines on Management of Climate Related and Environmental Financial Risks, dated October 2024 and issued under section 96 of the Financial Services Act, require banks and bank holding companies to integrate these risks into governance, risk management and stress testing and to disclose them at least annually1. A feasibility study prepared for the Reserve Bank in December 2024 describes green finance in Malawi as nascent, notes that no green bonds had been issued and recommends a green taxonomy2.
The Environment Management (Climate Change Fund) Regulations of December 2018 create a Climate Change Fund, which the government reported in September 2025 as still being set up with Green Climate Fund support34. The Carbon Market Framework of July 2025 sets rules and fees for participation in carbon markets under Article 6 of the Paris Agreement and a share of proceeds of 15–40% of gross revenue, depending on the project type5. It is a policy framework, not regulations5. NDC 3.0 estimates financing needs of US$7.06 billion for 2025–20356.
Building the green-finance framework
Nov 2015
First Green Climate Fund project for Malawi, FP0027Finance
Adaptation Fund approves the Smallholder Climate Resilience Project (US$20 m)9Finance
Jun 2026
NDC 3.0 with financing needs of US$7.06 bn6Climate
Environment Management Act, 2016Act No. 19 of 2017Assent 30 Apr 2017, published 5 May 2017, in force from 1 Nov 2019 (GN 73 of 2019)
The Act provides for the protection and management of the environment and the sustainable use of natural resources10. It came into operation on 1 November 2019 and established the Malawi Environment Protection Authority1112. The Climate Change Fund Regulations of December 2018 created a Climate Change Fund within the Environment Management Fund, and the Carbon Market Framework of July 2025 refers to the Act35.
Environment Management (Climate Change Fund) Regulations, 2018Government Notice No. 87 of 2018Gazetted 12 Dec 2018
The Regulations create a special Climate Change Fund for adaptation, mitigation, capacity building and research, financed in part by parliamentary appropriations3. The first Biennial Transparency Report of September 2025 states that the Fund was still being set up with Green Climate Fund support4. No climate change act was in force in October 2026, and a Climate Change Management Bill was under preparation in 20254.
Forestry ActCap. 63:01 (1997), amended by Act No. 5 of 2017 and Act No. 7 of 20202019 amendment (Act No. 7 of 2020) assent 11 Jun 2020, published 19 Jun 2020
The Forestry (Amendment) Act of 2019 added charcoal to the definition of forest produce and amended further provisions of the Forestry Act13. An earlier amendment was published in January 201714. Forest area fell from 2.66 million hectares in 2010 to 2.03 million in 2025 on FAO data15.
Fisheries Conservation and Management Act, 1997Cap. 66:05 (Act 25 of 1997)Published 28 Nov 1997, commencement by ministerial notice
The Act provides for the regulation, conservation and management of the fisheries of Malawi16. The National Fisheries and Aquaculture Policy was issued in a second edition in June 201617.
Disaster Risk Management Act, 2023Act No. 27 of 2023Assent 7 Jun 2023, gazetted 21 Jul 2023, commencement by ministerial notice (no notice found, section 37 applied in Nov 2025)
The Act provides for disaster preparedness, risk reduction, response and recovery and establishes a National Disaster Risk Management Committee and the office of Commissioner for Disaster Risk Management1920. In November 2025 a state of disaster was declared under section 37 for areas affected by dry spells in the 2024/25 season21.
FP002 Climate information and early warning (UNDP, 2015)
12.3
Source: GCF — The GCF country page lists nine projects with US$143 million for Malawi, most of them multi-country programmes. The three single-country grants total US$88.1 million (own calculation).
Emission reduction targets in NDC 3.0
% below business as usual, all sectors including forestry and land use
Target year
Unconditional (%)
Conditional on support (%)
2030
8
21
2035
12
35
2040 (indicative)
13
41
Source: GoM — Combined targets are 30%, 48% and 54%. The updated NDC of July 2021 set 6% unconditional and 51% combined for 2040, excluding forestry and land use25.
Green Climate Fund projects covering Malawi
Project
Accredited entity
GCF financing (US$ million)
Approved
FP002 Climate information and early warning systems
UNDP
12.29
5 Nov 2015
FP238 Ecosystem-based adaptation for watersheds and communities
FAO
42.81
18 Jul 2024
FP244 Climate-resilient health and well-being in southern Malawi
Save the Children Australia
33.00
24 Oct 2024
FP257 RE-GAIN food loss programme (seven countries)
AGRA
75.62 (all countries)
20 Feb 2025
FP291 ASCENT-GREEN energy access (21 countries)
World Bank
250 (all countries)
28 Mar 2026
Source: GCF — The GCF lists nine projects with US$143 million of financing for Malawi and US$4.4 million of readiness support.
7.2
What it means for agricultural lenders
Climate risk enters bank supervision
Banks must integrate climate and environmental risks into their risk management and report on them at least annually under the October 2024 guidelines1.
No green label yet
In December 2024 Malawi had no green taxonomy, and no green bond had been issued2.
International funds finance adaptation
The Green Climate Fund listed nine projects with US$143 million for Malawi in October 2026, and the Adaptation Fund approved US$20 million for smallholder resilience in April 2026249.
Carbon revenue for land-based projects
The Carbon Market Framework sets a government share of 15% of gross revenue for land-based projects on customary land5.
Carbon Market Framework, July 2025 (PDF) — Government of Malawi, Ministry of Natural Resources and Climate Change, Environmental Affairs Department (copy on Climate Policy Radar)verified
AI-assisted content, human-reviewed: This page was generated with the assistance of artificial intelligence and reviewed by a human editor. (last review: October 2026) Despite review, errors or outdated values may remain; please verify critical figures against the linked primary sources before relying on them. Nothing here is investment, legal or financial advice.
