Even though investments towards sustainable development in
developing countries have fallen short by nearly $2.5 trillion
each year, emerging financial products and encouraging policies
illustrate that both public and private sectors are serious about
correcting that trend, the United Nations environment arm has
said.
In its new report on green finance, the UN Environment Programme
(UNEP) has noted that the G20 and other countries have taken huge
strides over the last year towards mobilizing public resources
and private capital needed to make sustainable development and
climate action a reality.
“The world has committed to creating a better future for people
and planet. But we will not be able to achieve [this] vision
without the global financial system using its capital to fuel the
transformation,” said the Executive Director of UNEP, Erik
Solheim, in a news release announcing the findings.
“This new research […] shows encouraging progress in this regard.
From a record number of new green finance measures to ambitious
plans for green finance hubs, we are seeing the smart money move
to green financing,” he added.
The Green Finance Progress Report further notes that the
establishment of the Green Finance Study Group by the G20 last
year, under its Chinese Presidency, showed the group understood
that green financing at scale is critical to achieve the G20's
goal of securing balanced and sustained growth.
This message was reinforced by Germany's decision to continue the
work during its G20 Presidency this year, the report highlights.
The report also draws out examples from G20 countries of actions
they took in relation to green finance, such as the disclosure
requirements announced by the Securities and Exchange Board of
India for the issuing and listing of green debt securities, and
pilot areas for green finance announced by the State Council of
China.
It also finds that the progress made nationally, internationally,
and in financial and capital markets shows that financial system
is reshaping themselves to align with the sustainable development
imperatives of the 21st century.
“The challenge now is to rapidly increase capital flows to
investments that will support our sustainable development
objectives and create commercially viable green businesses for
decades to come,” said Mr. Solheim.
“The G20 and others have set the wheels in motion. Now is the
time to press hard on the accelerator,” he added.
