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

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
Indonesia Country Report

Date: 30-Apr-2015

Placing Indonesia’s economy onto a green and sustainable development pathway, as envisaged in the National Long Term Development Plan, will require a large mobilization of investment. Estimates of the annual investment needed are in the order of US$300‐530 billion, with a large portion of this investment needed in critical infrastructure, as well as environmentally sensitive
Brazil Country Report

Date: 06-Apr-2015

As a contribution to the UNEP Inquiry the Brazilian Bankers Federation FEBRABAN established a partnership with the Center for Sustainability Studies at Getulio Vargas Foundation (GVCes) to develop three studies on the practice and potential for green finance in Brazil. The first looks at the legislation, regulation, and public policies aimed at socio-environmental themes related to the financial
The Value of Everything

Date: 15-Dec-2015

The purpose of this paper is to begin the process of clarifying global asset value especially as may be affected by the sustainability (or lack thereof) of financial systems, and not just that which is represented by institutional assets under management. This paper, therefore, will answer this question of what is the actual total value of
Greening the Financial System: Enhancing Competitiveness Through Economic Development

Date: 16-May-2017

This briefing summarises the discussions held during a roundtable for market and policy leaders in Washington, D.C. on 20 April 2017. The goal of the event was to explore pathways to scale and speed up green finance and to harness its benefits for long-term sustainable growth and competitiveness. The key messages are: Green finance made
Sustainable Infrastructure and Finance

Date: 13-Jun-2016

Infrastructure is often referred to as the backbone of the global economy and plays a fundamental role in societies by enhancing the quality of life and increasing productivity. In addition to its effects on society and the economy, infrastructure can have significant impacts on the environment, depending on the choice of infrastructure. Approximately 75% of
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
China Report: Demand for Green Finance

Date: 06-Oct-2015

This paper reviews the statistics on investment in fixed assets of key green sectors in China to date and estimates the demand for green finance over the next five years, from 2015 to 2020. It estimates over 3 per cent of GDP—RMB 1,642 billion (USD 260 billion)—was invested into core green industry and infrastructure sectors in 2012.
China Report: Lessons from the Development of Green Finance in China

Date: 06-Oct-2015

With the initial progress of China’s green finance market, some lessons are emerging that are useful both for the further development of the green finance system and for other emerging market countries embarking on green finance development. Strategic political commitment has been the key driver for China’s development of green finance, but translating this into