18 May 2015
UNEP Calls for Shifting US$2.5 Trillion Annually to Green Investment in Asia-Pacific
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In January 2014, the UN Environment Programme (UNEP) launched the Inquiry into the Design of a Sustainable Financial System.

The Inquiry's initial research in the Asia-Pacific, compiled for the Regional Consultation on Financing for Development (FfD) in Asia and the Pacific, has revealed that redirecting US$2.5 trillion annually toward green and inclusive economic activities in the region is crucial for sustainable development.

UNEP13 May 2015: In January 2014, the UN Environment Programme (UNEP) launched the Inquiry into the Design of a Sustainable Financial System. The Inquiry’s initial research in the Asia-Pacific region, compiled for the Regional Consultation on Financing for Development (FfD) in Asia and the Pacific, has revealed that redirecting US$2.5 trillion annually toward green and inclusive economic activities in the region is crucial for sustainable development.

These findings, elaborated in the report titled ‘Aligning the Financial Systems in the Asia Pacific Region to Sustainable Development,’ underscores that the region is home to more than half the world’s people but much less than half its natural resources. The report thus calls for shifting investments in polluting, resource-intensive industries toward efficient and clean activities to ensure sustainable growth and prosperity.

The report recommends capitalizing on the opportunity offered by the region’s developing capital and financial markets for innovative standards, policies and regulations that encourage financial flows to align with the needs of sustainable development. The Inquiry has revealed that substantial innovation in this area is already occurring, such as through green disclosure requirements, green credit guidelines, sustainability indices and benchmarks, incorporation of climate risk into solvency analyses, and micro-finance.

To achieve inclusive and sustainable development, the new policy frameworks and innovative financial tools should guide investments toward basic services, infrastructure, environmental protection, energy efficiency and climate change response, according to the report. UNEP Executive Director Achim Steiner stressed that “Financial systems based on sustainability criteria can enhance the efficiency, effectiveness and resilience with which financial and capital markets channel these resources, delivering both returns to savers and the investment needed for economic growth and transformation.”

The Regional Consultation on FfD in Asia and the Pacific was held from 29-30 April 2015, in Jakarta, Indonesia. The recommendations contained in the report will be further discussed at the First Forum of Ministers and Environment Authorities of Asia Pacific, scheduled to take place from 19-20 May 2015, in Bangkok, Thailand. [UNEP Press Release] [Publication: Aligning the Financial Systems in the Asia Pacific Region to Sustainable Development] [IISD RS Story on Asia-Pacific High-Level Consultation on FfD][Previous posts on the Inquiry into the Design of a Sustainable Financial System][Inquiry website]


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