Towards a Performance Framework for a Sustainable Financial System

Performance Framework: Flows

Many countries, as well as international development finance institutions are beginning to measure and report on actual flows of finance for sustainable development. There are as yet no harmonised standards, but common broad categories are often considered:
  • Green finance funded by, or directly leveraged by public investment
  • Commercial investment into key green sectors and product types
  • Flows of finance covered by environmental due diligence or environmental criteria
  • Value at risk from environmental hazards and associated policy shifts.
Countries that are building systems for measuring actual flows of green finance include Bangladesh, Brazil and China.

Inquiry Publications

  • Bangladesh Country Report

    Date: 09-Oct-2015

    Bangladesh has been a leader in developing policies to shape a greener and more inclusive financial system. It has a suite of green banking regulations and policies including concessional green refinancing, credit quotas for green finance and guidance and requirements on environmental due diligence. Green finance is growing but it remains modest compared to the scale of Bangladesh’s

  • Green Finance Progress Report

    Date: 11-Jul-2017

    The G20 Green Finance Synthesis Report adopted at the G20 Leaders Summit in Hangzhou in September 2016 set out seven options identified by the G20 Green Finance Study Group (GFSG) to accelerate the mobilization of green finance. This paper highlights some of the progress made against these seven options in G20 members and internationally since June 2016.

  • Experience and Lessons from South Africa: An Initial Review

    Date: 17-Jun-2016

    This paper provides an outline of South Africa’s financial sector, the environmental and social issues it faces, the response of government and financial regulators and the extent to which has resulted in measurable sustainable investment flows. In South Africa environmental, social and governance (ESG) considerations appear on the agenda of strategic discussions and are part of the

  • Green Foreign Direct Investment in Developing Countries

    Date: 23-Oct-2017

    This paper focuses on the actual and potential role of foreign direct investment (FDI) in achieving the transition to a low-carbon, just and sustainable world and, more specifically, FDI flows into developing countries. The particular implications of FDI on the environment – both potentially positive and negative – have given rise to an interest in

  • Aligning the Financial System with Sustainable Development in the United States of America

    Date: 01-Feb-2016

    The US financial system is undoubtedly among the largest, most innovative and most sophisticated in the world. It is also clear that this is both a benefit and an impediment to non-governmental investment in sustainability and inclusiveness. To date, the actual investment in infrastructure and sustainability does not meet current needs, especially those related to maintaining

  • Collaborative Initiative for Green Finance in Singapore

    Date: 12-Nov-2017

    This Report aims to mainstream and socialise the idea and opportunities associated with Green Finance, as well as to explore how Singapore as a financial hub can offer Green Finance as additional expertise to better serve the needs of the ASEAN and Asia region. Besides the members of the financial community, the Report hopes to

  • Towards a Performance Framework for a Sustainable Financial System

    Date: 29-Nov-2016

    This paper is intended to serve as a window on the Inquiry’s analytical approach, providing a deeper understanding of the unifying criteria for evaluation of multiple market designs for financial systems in a variety of economic, political and social settings. It is also intended to provide a foundation for investors and corporate management and policymakers,

  • 3rd Update Report: Pathways to Scale

    Date: 07-Jan-2015

    This is the 3rd Update Report of the UNEP Inquiry, it is focused on the challenge of financing the low-carbon transition. It explores how innovative ideas and practices can be made more effective, adopted more widely, and taken to scale—and as a result move the trillions that are required. Scaling-up proven but limited innovations, is a common

  • On the Role of Central Banks in Enhancing Green Finance

    Date: 20-Feb-2017

    The paper examines the role of central banks in ‘greening’ financial systems. Given the enormous investments needed to bring about a green transformation, the financial sector will have to play a central role in allocating resources towards a sustainable and green economy – and stop financing activities that harm the environment. Against this backdrop, the

  • Towards a Stock-Flow Consistent Ecological Macroeconomics

    Date: 22-Aug-2015

    This paper describes the challenge of modelling combined economic, ecological and financial systems and sets out a series of objectives for modelling the socio-economic transition towards sustainability. It highlights the modelling needs in relation to full employment, financial stability, and social equity under conditions of constrained resource consumption and ecological limits. It outlines the development

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