Towards a Performance Framework for a Sustainable Financial System

Performance Framework: Needs

A key starting point for assessing the adequacy of sustainable finance are measures of the ammount of finance need, and the financing gaps to address key social and environmental challenges. This includes
  • Capital investment needed for critical priorities such as clean energy, biodiversity, climate change, food security, water and sanitation.
  • Capital needed to be shifted away from unsustainable activities, such as the most resource intensive, and polluting activities, and extensive and inefficient physical infrastructure that locks in resource-intensive consumption.
  • Capital which needs to be reserved against conditions that could challenge sustainability, including insurance against the consequences of the realization of environmental risks.
Estimates of the amount of finance needed in key areas, and the amount of finance that needs to be directed away in others have been undertaken at the international level. For example UNCTAD estimates that US$5-7 trillion a year is needed to finance the Sustainable Development Goals. The Commission on the Economy and Climate estimates some US$5.7 trillion of investment will need to be reduced in fossil fuel extraction and power generation between 2015 and 2030. Similar calculations are taking place nationally.  

Inquiry Publications

  • 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,

  • The Financial System We Need: From Momentum to Transformation

    Date: 29-Sep-2016

    Download the policy summary: [AR] [CH] [EN] [ES] [FR] [PT] [RU] Download the individual chapters: Chapter 1: Mapping the momentum | Chapter 2: Harnessing financial technology for sustainable development | Chapter 3: Measuring performance | Chapter 4: Steps towards transformation Our follow-up annual report reveals a doubling in policy actions over the past five years to align the global financial system with sustainable

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