World making ‘huge strides’ on green finance
The G20 and other nations have made “huge strides” over the last year on green finance.
According to UN Environment, the countries have mobilised trillions of dollars of public and private capital needed to make sustainable development and climate action a reality.
The UN Conference on Trade and Development research from 2015 showed investment required to bring sustainable development in developing countries was short $2.5 trillion (£1.9tn) each year, with as much as 10 times that needed globally, mainly from private sources.
The UN’s latest report found dozens of “encouraging” policies and financial product developments that show the public and private sectors are serious about changing this trend.
There were an increase in green finance last year, most notably in the issuance of green bonds, which grew by around 100% from 2000 to $81 billion (£62bn).
Country specific actions include the Securities and Exchange Board of India (SEBI) issuing disclosure requirements for green debt securities, China’s State Council announcing five pilot areas for green finance and France issuing a €7 billion (£6bn) sovereign green bond.
Erik Solheim, Head of UN Environment said: “The world has committed to creating a better
future for people and planet. But we will not be able to achieve our sustainable vision without the global financial system using its capital to fuel the transformation.
“This new research from UN Environment, a contribution to the G20 Green Finance Study Group, 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.”