Greening the Financial System: Exploring the Ways Forward
This briefing summarises the discussions held during the “Greening the Financial System: Exploring the Ways Forward” event in Washington, D.C. on 12 October 2017. The goal of this convening, the fourth in the series, was to examine lessons from developing and implementing green finance initiatives over the last few years and to highlight successful examples and opportunities, particularly from China and of green digital finance.
The key messages are:
- Strong governance is critical in driving progress in green finance. Demonstrated leadership in developing domestic green policy guidelines and markets have resulted in the increase in demand and issuance of green finance products and can further support green finance growth and harmonization.
- The definition of green finance is evolving. From the financing of investments that provide environmental benefits in climate change mitigation and adaptation, ”green finance” is evolving to include sustainable natural resource management, inclusive finance, education and other sustainable development criteria identified by the Sustainable Development Goals (SDGs) in the 2030 Agenda.
- Financial technology can reshape business opportunities and provide green innovators new ways to access capital, to alter
consumer behaviour and to scale green digital finance. The development of more cooperative platforms, such as the Green
Digital Finance Alliance (GDFA), will further facilitate the scaling of green digital finance.
- China recognizes the strategic imperative of green finance and has emerged as a prominent leader in promoting and implementing it. The Belt and Road Initiative is an opportunity for China to further incorporate green finance and climate risk policies, while sharing successful experiences, and encourage adoption of green finance by emerging economies.
Related Inquiry Publications
- Greening the Financial System: Enhancing Competitiveness Through Economic Development
- Roadmap for a Sustainable Financial System
- Establishing China’s Green Financial System: Progress Report
- Collaborative Initiative for Green Finance in Singapore
- Green Foreign Direct Investment in Developing Countries