14 July 2017: The UN Environment Programme (UN Environment or UNEP) Inquiry: Design of a Sustainable Financial System has published a report titled, ‘Green Finance Progress Report.’ The publication highlights progress made in G20 member countries, and internationally since 2016, to mobilize private capital for green investment through a range of finance measures, including green financing mobilized policies, regulations, standards, guidelines, principles and fiscal incentives.

The report outlines progress made against the seven options to accelerate the mobilization of green finance identified by the Green Finance Study Group (GFSG) in the ‘G20 Green Finance Synthesis Report,’ which was adopted at the G20 Summit in Hangzhou, China, in September 2016. The seven options are to: provide strategic policy signals and frameworks; promote voluntary principles for green finance; expand learning networks for capacity building; support the development of local green bond markets; promote international collaboration to facilitate cross-border investment in green bonds; encourage and facilitate knowledge sharing on environmental and financial risk; and improve the measurement of green finance activities and their impacts.

The report finds that these trends have contributed to a measurable increase in green finance flows.

Prepared as a contribution to the G20 GFSG, the paper shows that more green finance measures have been introduced since June 2016 compared with any other one-year period since 2000. It describes progress in terms of three mutually reinforcing trends: increasingly systemic national action; greater international cooperation; and increased market leadership at the individual and collective levels. The report finds that these trends have contributed to a measurable increase in green finance flows, for example in the issuance of green bonds, which grew by approximately 100% to US$81 billion in 2016.

UN Environment initiated the ‘UN Environment Inquiry: Design of a Sustainable Financial System’ to advance policy options to improve the financial system’s effectiveness in mobilizing capital towards a green and inclusive economy, and sustainable development. [Green Finance Progress Report] [UN Environment Press Release] [G20 Green Finance Synthesis Report] [SDG Knowledge Hub Story on G20 Green Finance Study Group Presenting Findings] [GFSG Document Repository]