About this Discussion

The financial system can play a major role in contributing to a transition towards a low-carbon, resilient and inclusive economy. However, for this to happen, three key deficiencies must be addressed:  the misallocation of available capital for long-term development; externalities and systemic risk, including climate change; and environmental stress, notably natural disasters. Critical to aligning financial and capital markets will be measures within the financial system to green private finance through adjustments to key policies, regulations, standards and norms, and through market innovations.

In 2018, the Global Environment Facility (GEF) launched the GEF Aligning Finance Policies project to build international consensus to align financial systems with the UN Sustainable Development Goals (SDGs) and develop national regulatory actions. The project focuses on the development of national Sustainable Finance Roadmaps in six countries – China, India, Kazakhstan, Mexico, Mongolia and Nigeria – and building international consensus on best practices – from policies and regulations to standards and norms – to green the financial system.

This Green Forum discussion is for professionals to share their knowledge and experience on sustainable finance, particularly best practices to help align the financial system with sustainable development and climate change mitigation needs, as well as ways to incorporate sustainability factors into the rules that govern banking, insurance, institutional investment and capital markets.

 

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Sustainable Finance

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Infrastructure is key in many countries’ recoveries from COVID-19, but private financing in the sector only comprises around 0.7% of all debt and equity investments in emerging markets and developing economies. With approximately 75% of the infrastructure that will exist in 2050 not yet built, there is a clear opportunity for growth. What will it take to bring in private finance?

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https://www.devex.com/news/how-to-scale-private-finance-for-sustainable-infrastructure-99916

Still in the spirit of Biodiversity Day, our latest blog written by Sir Partha Dasgupta asks that we change our economic accounting model to one that measures inclusive wealth to account for nature in economic decision-making, as reflected on his landmark report the Dasgupta Review.

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https://thegreenforum.org/blog/our-economic-blind-spot-valuing-natural-capital-sustainable-growth

WRI, WWF, and HSBC have launched a US$100m Climate Solutions Partnership, which aims to accelerate efforts to scale up climate innovation ventures, nature-based solutions, and renewable energy and energy efficiency in Asia

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https://www.hsbc.com/who-we-are/our-climate-strategy/climate-solutions-partnership

To give investors access to decision-useful information to effectively price and manage climate risks, there is an urgent need to strengthen the “climate information architecture.” Data gaps make it difficult to assess firms’ exposure to climate risk. A consistent, timely, and uniform implementation of internationally agreed sustainability reporting standards is necessary.

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https://blogs.imf.org/2021/05/13/how-strengthening-standards-for-data-and-disclosure-can-make-for-a-...

Biodiversity plays a vital role in supporting human life. CDSB's recent research on European reporting practices provides guidance for companies in addressing such matter and land-use related financial reporting.

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https://www.cdsb.net/natural-capital/1188/connecting-biodiversity-financial-capital?utm_medium=email...
The Alliance for Green Commercial Banks(the Alliance)

The Alliance for Green Commercial Banks (the Alliance), co-organized by International Finance Corporation (IFC) and The Hong Kong Monetary Authority (the HKMA), is hosting the second training session on 28 May 2021. Read More

In the lead up to the Biodiversity Day, our latest blog from one of the GGKP Natural Capital Expert Group members, Anil Markandya, highlights the critical needs to invest on nature in order to meet the SDGs. According to a recent study by the GGKP and the Basque Centre for Climate Change (BC3), globally it is estimated that, additionally, about $774 billion/year is required to meet the selected targets for the eight natural capital-related SDGs by 2030.

Do you have any question about the study? Reach out to John J. Maughan, Sun Cho, or Andrew Pickens

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https://thegreenforum.org/blog/plugging-natural-capital-financing-gap-meet-sdgs
Maria Dumpert commented on Minha Yoon's Post in Sustainable Finance, Climate Change, Forestry

From the outset CDP has advanced global efforts toward net-zero, catalyzing action by subnational groups. On the route towards net-zero 2050, the organisation that strives to drive companies and governments to reduce their GHG emissions recognises "all of the above" approach which prioritises emissions reduction along with filling the climate finance gap. What's their take on carbon offsets to reach this destination?

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https://www.cdp.net/en/articles/forests/how-do-carbon-offsets-fit-into-a-net-zero-future
Stephani Widorini commented on Minha Yoon's Post in Climate Change, Energy, Sustainable Finance

Global energy systems must undergo a wholesale switch to low-carbon and energy-efficient technologies to achieve a net-zero emissions by the mid-century. Yet in reality, there has been no urgency in facilitating clean energy transition given the projected economic models. However, this blog identifies how the low-carbon transition may actually end up being much cheaper than models initially predicted.

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https://www.carbonbrief.org/guest-post-why-the-low-carbon-transition-may-be-much-cheaper-than-models...

"Take, make, dispose, repeat are four words that underpin every aspect of our daily lives. But at what cost to people, and our planet?"

Check out the latest episode of #TheGreenRenaissance: From Lines to Loops for a Circular Economy - out now! ⭕

With COVID-19 again highlighting the wastefulness of our economic model, how do we embrace circularity as part of a green recovery to deliver on multiple fronts?

This month Ellen MacArthur Foundation’s Miranda Schnitger, UNIDO’s Nilgün Tas and Centro Tecnológico del Plástico’s Paula Iharur have the answers!

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https://www.youtube.com/watch?v=7SBzgsSffpc