UNEP Finance Inquiry launches 'The Financial System We Need' report
The UNEP Inquiry team, led by Mahenau Agha, Simon Zadek, and Nick Robins, have faced the challenge of harnessing the assets of the world’s financial system to deliver sustainability, and has uncovered three key findings:
- A ‘quiet revolution’ is underway as financial policymakers and regulators take steps to integrate sustainable development considerations into financial systems to make them fit for the 21st century.
- Momentum is building and is largely driven by developing and emerging nations including Bangladesh, Brazil, China, Kenya, and Peru, with developed country champions including France and the UK.
- Amplifying these experiences through national and international action could channel private capital to finance the transition to an inclusive, green economy and support the realization of the Sustainable Development Goals.
The UNEP Inquiry into the Design of a Sustainable Financial System was established in January 2014 with a mandate to advance policy options that would improve the effectiveness of the financial system in supporting sustainable development.
Supported by a high-level Advisory Council of financial leaders, the Inquiry has looked in-depth at practice in more than 15 countries as well as across key segments of the financial system, such as banking, bond and equity markets, institutional investment, insurance as well as monetary policy. To reach its findings, the Inquiry has worked with central banks, environment ministries, international financial institutions as well as major banks, stock exchanges, pension funds and insurance companies.
The Inquiry`s report presents a Framework for Action that includes a toolbox of nearly 40 different measures, a set of five policy packages across banking, bond and equity markets, institutional investors and insurance, and a prioritized set of 10 next steps to promote international financial cooperation.
Reacting to the report, Achim Steiner, UN Under-Secretary-General and Executive Director of UNEP said:
UNEP's Inquiry has for the first time compiled and analysed inspiring initiatives from across the world that seek to better align the financial system with sustainable development, showing that there is much to be learnt from the developing world. We now need to raise the level of ambition and cooperation to ensure that the heartland of the global economy, the financial system, can evolve to serve its core purpose of growing and sustaining the real economy. UNEP's report opens a new chapter by setting out how such an evolution can be achieved.
The GEC views a sustainable financial system as a crucial pillar on which all successful green economies must build, and this report represents a critical milestone on the path to establishing this foundation.
Oliver Greenfield, GEC Convenor, says:
This report offers a path to redemption for the finance sector – it shows how they can be the leaders of the green transformation and help build an economy fit for the 21st century.
For more information, and to read the full report, policy summary, or access any of the Inquiry reports, please visit the UNEP Inquiry website.
Come on a journey around the world to where our green economy hubs are mapping out the transition.
Glimpses of a green economy
The green economy coalition is a global network of organisations committed to accelerating a transition to a new green inclusive economy. This site was made possible with the help of expert collaborators. For regular updates, grab our RSS feed, sign up for the monthly newsletter, or follow us on Twitter or Facebook. Read on for more about who we are...