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Green Financing

Source: (unep.org)

Green financing is to increase the level of financial flows (from banking, micro-credit, insurance and investment) from the public, private and not-for-profit sectors to sustainable development priorities. A key part of this is to better manage environmental and social risks, take up opportunities that bring both a decent rate of return and environmental benefit and deliver greater accountability. Green financing could be promoted through changes in countries’ regulatory frameworks, harmonizing public financial incentives, increases in green financing from different sectors, alignment of public sector financing decision-making with the environmental dimension of the Sustainable Development Goals, increases in investment in clean and green technologies, financing for sustainable natural resource-based green economies and climate-smart blue economy, increase use of green bonds, and so on. Sustainable Development Goals (SDGs) and Green Financing UN Environment have been working with countries, financial regulators and the finance sector to align financial systems to the 2030 sustainable development agenda – to direct financial flows to support the delivery of the Sustainable Development Goals. At the core of today’s globalized economy are financial markets through which banks and investors allocate capital to different sectors. The capital allocated today will shape ecosystems and the production and consumption patterns of tomorrow. The main areas for the current work on green financing are: Supporting public sector on creating enabling environment Promoting public-private partnerships on financing mechanisms such as green bonds Capacity building of community enterprises on micro-credit UN Environment through its resource efficiency programme will offer countries the service of reviewing their policy and regulatory environment for the financing system and developing sustainable finance roadmaps, and assisting central banks, regulators on how to best improve the regulatory framework of domestic financial markets to shape the way and supporting multi-country policy initiatives at the sub-regional, regional and global level. UN Environment will build on current initiatives such as private climate finance and will work with policymakers and private sector leaders to connect to green economy initiatives. UN Environment will also catalyze the policy action that inspires and informs both public and private investors. Partnerships Multi-stakeholder partnerships will be promoted to include major actors in financial markets, banks, investors, micro-credit entities, insurance companies along the public sector.

Outline:

• Green Financing

Why green finance is important

Sustainable Finance Roadmap

Capacity Building of Community Enterprises on Micro Credit

UNEP has developed an integrated approach towards achieving SDG targets by focusing on three pillars: 1) reducing emissions; 2) improving resilience and 3) enhancing quality of life. This includes addressing issues related to energy access, food security, water resources management, waste reduction, urbanization, biodiversity loss, land degradation, ecosystem services, pollution prevention and adaptation.

However, there is a widely perceived need for greater certainty on the environmental sustainability of different types of investments and economic activities. (oecd-ilibrary.org)

What is the example of green finance?

It is necessary to better align and reform policies across the regulatory spectrum to overcome barriers to green investment, and to provide an enabling environment that can attract both domestic and international investment. (oecd-ilibrary.org)

The implementation of green finance 

At least $30.7 trillion of funds is held in sustainable or green investments, up 34% from 2016, according to a report by the Global Sustainable Investment Alliance, a group of organizations tracking those moves in five regions from the U.S. to Australia. (bloomberg.com)

Source to learn about green finance 

 Policymaker and green finance

The report lays out preliminary considerations for the good design of taxonomies, which can support policymakers to develop and grow sustainable finance markets to help achieve environmental and sustainable development goals. (oecd.org)

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