About this Discussion

The financial system can play a major role in contributing to a transition towards a low-carbon, resilient and inclusive economy. However, for this to happen, three key deficiencies must be addressed:  the misallocation of available capital for long-term development; externalities and systemic risk, including climate change; and environmental stress, notably natural disasters. Critical to aligning financial and capital markets will be measures within the financial system to green private finance through adjustments to key policies, regulations, standards and norms, and through market innovations.

In 2018, the Global Environment Facility (GEF) launched the GEF Aligning Finance Policies project to build international consensus to align financial systems with the UN Sustainable Development Goals (SDGs) and develop national regulatory actions. The project focuses on the development of national Sustainable Finance Roadmaps in six countries – China, India, Kazakhstan, Mexico, Mongolia and Nigeria – and building international consensus on best practices – from policies and regulations to standards and norms – to green the financial system.

This Green Forum discussion is for professionals to share their knowledge and experience on sustainable finance, particularly best practices to help align the financial system with sustainable development and climate change mitigation needs, as well as ways to incorporate sustainability factors into the rules that govern banking, insurance, institutional investment and capital markets.

 

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Sustainable Finance

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Sustainable Energy for All(SEforALL)

Sustainable Energy for All (SEforALL) is officially launching two major reports under SEforALL’s Energizing Finance research series on 19 November 2020. Read More

Bank of Canada and OSFI launch pilot project on climate risk scenarios

The Bank of Canada and the Office of the Superintendent of Financial Institutions (OSFI) today announced plans for a pilot project to use climate-change scenarios to better understand the risks to the financial system related to a transition to a low-carbon economy. A small group of institutions from the banking and insurance sectors will participate voluntarily in the project.

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https://www.bankofcanada.ca/2020/11/bank-canada-osfi-launch-pilot-project-climate-risk-scenarios/

Investors urge European companies to include climate risks in accounts

Coalition overseeing $9tn in assets have written to groups including Anglo American, BMW, EDF and Lufthansa

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https://www.ft.com/content/dd01aacd-85a0-4577-9700-26f1d6fb26b3

The Climate Finance Leadership Initiative (CFLI), in partnership with the Association of European Development Finance Institutions (EDFI) and the Global Infrastructure Facility (GIF), has released a working paper on strengthening investment conditions for private climate finance in emerging markets. Designed to help expedite negotiations between parties on sustainable infrastructure investments, 'Attracting Private Climate Finance to Emerging Markets: Private Sector Considerations for Policymakers' identifies key factors considered by investors when reviewing emerging market investment opportunities in clean energy, sustainable urban transport, climate-smart water and waste, green buildings, and sustainable land use. They are currently inviting feedback on the working paper from diverse stakeholders across business, government, and civil society. The consultation period is open until January 15, 2021.

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https://www.bloomberg.com/cfli?cid=INF_EM_InfraFinance_EN_EXT_NL0620&deliveryName=DM80616
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Created a Post in Sustainable Finance

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Created a Post in Sustainable Finance

Impact investing: How do advisors figure out which ESG funds are a good fit for clients and their portfolios?

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https://www.cnbc.com/2020/11/11/figuring-out-which-esg-funds-are-a-good-fit-for-client-portfolios-.h...

The UK will become the first country in the world to make Task Force on Climate-related Financial Disclosures (TCFD) aligned disclosures fully mandatory across the economy by 2025, going beyond the ‘comply or explain’ approach.

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https://www.gov.uk/government/news/chancellor-sets-out-ambition-for-future-of-uk-financial-services

In first for Fed, U.S. central bank says climate poses stability risks

In its biennial financial stability report, the U.S. Federal Reserve called out climate change among risks enumerated: “Acute hazards, such as storms, floods, droughts, or wildfires, can quickly alter, or reveal new information about, future economic conditions or the value of real or financial assets”

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https://www.reuters.com/article/usa-fed-stability-climate/in-first-for-fed-us-central-bank-says-clim...