8 October 2015: The UN Environment Programme (UNEP) Inquiry into the Design of a Sustainable Financial System launched its final report at the annual meetings of the International Monetary Fund (IMF) and World Bank. ‘The Financial System We Need: Aligning the Financial System with Sustainable Development’ compiles initiatives around the world to mobilize financial capital toward sustainable development aims, and away from activities that deplete natural capital. It notes that developing countries Bangladesh, Brazil, China, Kenya and Peru have been at the forefront of such efforts, with strong support from France and UK.

Launching the report in Lima, Peru, UNEP Executive Director Achim Steiner called on all concerned to ensure that “the heartland of the global economy, the financial system, can evolve to serve its core purpose of growing and sustaining the real economy.”

The report sets out ways in which such a transition can be achieved, including: enhancing market practice through disclosure, analysis and risk management; harnessing the public balance sheet, for example, by applying fiscal incentives; directing finance through policy requirements and prohibitions; bringing about cultural transformation; and improving the governance of financial systems.

The report is the outcome of two years of research. [Publication and Press Release: The Financial System We Need: Aligning the Financial System with Sustainable Development] [IISD RS Guest Article by UNEP Inquiry Co-Directors]