19 October 2018: The Financial Centres for Sustainability (FC4S) network launched its Asia-Pacific Centre at the second meeting of the global network. The regional Centres aim to scale up financing for climate action and sustainable development.
The UN Environment Programme (UNEP, or UN Environment), which serves as the Secretariat and Convener of FC4S, launched the network in September 2017 in Casablanca, Morocco. FC4S aims to enable financial centers to exchange experience, drive convergence and take action on shared priorities to accelerate the expansion of sustainable, green finance.
Financial centers are locations in the economy where banking, investment and insurance markets are concentrated. Current members of the network are Astana (Kazakhstan), Casablanca, Dublin (Ireland), Frankfurt (Germany), Geneva (Switzerland), Hong Kong, London (UK), Luxembourg, Liechtenstein, Milan (Italy), Paris (France), Qatar, Seoul (Republic of Korea), Shanghai (China), Shenzhen (China), Stockholm (Sweden), Tokyo (Japan), Toronto (Canada) and Zurich (Switzerland).
Mobilizing financial centers can contribute to securing an additional 1.5% in global investment needed to limit global warming to 1.5°C.
The Asia-Pacific Centre will work with cities in the region to promote the innovation and development of sustainable and green finance. The Centre will be located in Shanghai Lujiazui Financial City, an international financial center with capital markets, financial institutions and financial talent. As part of the initiative, Lujiazui Financial City signed an agreement with Casablanca Financial City to strengthen cooperation in green finance, sustainable finance and resource exchange. The city also launched a ‘Green Finance Integrated Development Platform,’ the region’s first online green finance platform, which aims to promote information exchange on green projects, capital and finance and enable companies and institutions to integrate resources and match supply and demand.
According to the Intergovernmental Panel on Climate Change (IPCC) Special Report on Global Warming of 1.5ºC (SR15), an additional 1.5% in global investment is needed to limit the global average temperature rise to 1.5°C above preindustrial levels. A UNEP press release notes that mobilizing the world’s financial centers can contribute to achieving this recommended system transition.
The second meeting of the global network of FC4S convened in Shanghai, China, from 18-19 October 2018. At the meeting, the network appointed two co-chairs to provide strategic leadership: Pierre Ducret, board member of the Paris-based Finance for Tomorrow initiative, and Kong Wei, chair of the Shanghai Green Finance Committee. [UNEP Press Release] [FC4S Website] [SDG Knowledge Hub Story on FC4S Inaugural Meeting]