This report aims to help financial decision-makers to align finance with sustainable development, accelerating the transition to a net-zero, climate resilient economy, based on the latest scientific findings and policy developments. It proposes four interventions to achieve this objective in the context of COVID-19.
Financing a rapid transition to a net-zero emission, climate-resilient economy will require significantly more investment in low carbon and climate resilient options. They will be scaled up at the required level only if they alleviate and do not exacerbate the short-term economic and social tensions. They must also address the imperative of social inclusion and poverty alleviation (UNFCCC, 1992).
This places a triple responsibility on financial decision-makers, financial system regulators and governments: Maintain the capacity of the financial system to support economic activity, encourage entrepreneurship, and safeguard the assets of millions of savers, pensioners, local public institutions, and businesses; Channel a much larger share of private savings towards sustainable and low carbon options; and Create a business environment in which climate policies alleviate today'stensionsin the world economy (unemployment, poverty, inequality, trade disputes).