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
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- 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.