The Financial System We Need Aligning the financial system with sustainable development PRESENTER November 2015 "UNEP's Inquiry has for the first time compiled and analyzed inspiring initiatives from across the world that seek to better align the financial system with sustainable development. " Achim Steiner, UN Under-Secretary-General & Executive Director, UNEP
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The Financial System We Need
Aligning the financial system with sustainable
developmentPRESENTER
November 2015"UNEP's Inquiry has for the first time compiled and analyzed inspiring
initiatives from across the world that seek to better align the financial system with sustainable development. "
Achim Steiner, UN Under-Secretary-General & Executive Director, UNEP
UNEP CONVENES FINANCIAL COMMUNITY IMF/WORLD BANK ANNUAL MEETINGS
Lima, 8th October 2015
Mark Carney, Governor, Bank of England Atiur Rahman, Governor, Bangladesh Bank
Yi Gang, Deputy Governor, People`s Bank of China
“Green finance cannot be a niche”
“Developing economy central banks have been trying to address the risks of instabilities and imbalances at sources, by promoting sustainable financing”
“China will advance green finance during its presidency of the G20 in 2016”
Annual global investmentAll needs to be green and resilient
US$16
trillion
Annual investment needed for sustainable development goals e.g. in infrastructure, energy, agriculture
US$5-7trillion
US$7 trillion
Annual environmental externalities – need to be costed into decision making
US$6 trillion
Reduction in fossil fuel and power investment need (2015-2030)
FINANCING CHALLENGES (ILLUSTRATIVE)TOO MUCH OF THIS
NOT ENOUGH OF THIS
“Finance overwhelms the real economy. The lessons of the global financial crisis have not been assimilated, and we are learning all too slowly the lessons of environmental deterioration.”
Pope Francis
Advance policy options to improve the financial system’s alignment with sustainable development
… and now need to be developed into a systemic approach.
Naina Kidwai, Chairman, HSBC India, Director, HSBC Asia Pacific
The Advisory Council sees the Inquiry’s global report not as the end of a process, but as alaunch pad for the continued analysis and action….
"Too often the financial system & sustainable development have been tackled in separate silos. The Inquiry has shown for the first time how to systematically connect the dots”
“The Inquiry has uncovered a new generation of policy innovations that aim to ensure the financial system serves the needs of inclusive, environmentally-sustainable, economic development”
“Reforming the financial system remains unfinished business - we have stabilized the system, but have a long way to go in meeting the needs of sustainable development”
Rachel Kyte, VP & Special Climate Envoy, World Bank Group
John Lipsky, former first Deputy Managing Director of the IMF
INSIGHTS FOR ACTION
SLIIDE 6
Kenya Bankers AssociationCentral BankIFC
ChinaPeople’s Bank of ChinaDevelopment Research Centre, IISD
South AfricaBankers AssociationGlobal Green Growth InstituteJohannesburg Stock Exchange
BrazilBankers FederationFundação Getulio Vargas
Bangladesh Bangladesh Bank, Council on Economic Policies
US CalPERS,
SAIS
ColombiaMinistry of FinanceIFC
Indonesia Financial Services Authority (OJK)IFC, ASRIA
IndiaFICCI, NIPFP
Switzerland Federal Office of Environment, SwissRe
Netherlands Ministry of Environment Utrecht Sustainable Finance Lab
France 2 Degrees Initiative, France Strategie, I4CE
The People’s Bank of China (PBC) has co-convened with the Inquiry a Green Finance Task Force to draw up proposals for a green financial system.
The Federation of Indian Chambers of Commerce and Industry (FICCI) has catalysed a high-level dialogue between the industry, government and regulators.
The Swiss Federal Office for the Environment launched a national consultation with the Swiss Sustainable Finance Initiative.
The Bank of England worked with the Inquiry on the international dimension of its prudential review of insurance and climate change.
Three quarters of the members of China’s Green Finance Task Force were from the private sector. Members included representatives of : Shenzhen Stock Exchange, China Securities, China Minsheng Bank, ICBC, China Banking Regulatory Commission, People’s Bank of China.
In the Netherlands the Dutch Banking Code was developed by the Dutch Banking Association (NVB) and has been integrated in regulation.
South Africa’s Financial Sector Charter was developed through a multilateral social dialogue forum which brought together Government, Business, Labour and Community constituencies.
The Federation of Indian Chambers of Commerce and Industry (FICCI) catalysed a high-level dialogue between the industry, government and regulators. Members of the advisory committee included Shakti Foundation, Kiran Energy, TERI, SunEdison, Yes Bank,, WWF, IFC, HSBC
EXTERNAL FINANCIAL INSTITUTIONS• Bank of International Settlements• Central Banks and Ministries of Finance• Financial Stability Board• IMF• OECD• World Bank Group
“The sustainable finance programme is not only intended to increase financing but also to improve the resilience and competitiveness of financial institutions” Muliaman D. Hadad, Chairman, Indonesia Financial Services Authority (OJK) Board