Green finance can be promoted through changes in countries’ regulatory frameworks, harmonization of public financial incentives, increasing green finance from different sectors, aligning public sector financing decisions with the environmental dimension of the Sustainable Development Goals, increasing investment in clean and green technologies, financing a sustainable green economy based on natural resources and a climate-smart blue economy, increasing the use of green bonds, etc.
UN Environment is working with countries, financial regulators and the financial sector to align financial systems with the 2030 Agenda for Sustainable Development to direct financial flows to support the achievement of the Sustainable Development Goals. Financial markets are the backbone of today’s globalized economy, through which banks and investors allocate capital to various sectors. The capital allocated today will shape the ecosystems and production and consumption patterns of tomorrow.
The main areas of current work on green finance are:
- Supporting the public sector in creating an enabling environment
- Promoting public-private partnerships on financing mechanisms such as green bonds
- Developing the capacity of public enterprises for microcredit
UN Environment, through its Resource Efficiency Programme, will offer countries services to review their policy and regulatory environment for the finance system and develop sustainable finance plans, and will assist central banks and regulators on how best to improve the regulatory framework for domestic financial markets to pave the way and support multinational policy initiatives at the sub-regional, regional and global levels. UN Environment will build on ongoing initiatives such as private climate finance and work with policymakers and private sector leaders to connect to green economy initiatives. UN Environment will also catalyze policy actions that inspire and inform both public and private investors.
Partnerships
Multi-stakeholder partnerships will be fostered, including major financial market participants, banks, investors, microcredit institutions, insurance companies, and the public sector.