Financing the green transition: The European Green Deal Investment Plan and Just Transition Mechanism
January 14, 2020 - The European Union is committed to becoming the first climate-neutral bloc in the world by 2050. This requires significant investment from both the EU and the national public sector, as well as the private sector. The European Green Deal's Investment Plan - the Sustainable Europe Investment Plan - presented today will mobilise public investment and help to unlock private funds through EU financial instruments, notably InvestEU, which would lead to at least €1 trillion of investments. Read more
As sustainability and climate concerns dominate public debate, investors are taking note
January 11, 2020 - 2019 was the year where issues such as sustainability and climate concern dominated public debate, with Greta Thunberg emerging as a leading international commentator. It was also the year where Environmental, Social and Governance (ESG) factors moved towards the top of both the business and public policy agendas. Read more
UNDP launches Ocean Innovation Challenge
January 8, 2020 - The momentum on ocean protection and restoration has rapidly accelerated particularly since the 2017 Ocean Conference. However, a number of the SDG 14- Life Below Water targets still lag behind. Between overfishing, pollution, habitat loss and the multiple impacts of climate change on ocean ecosystems, the ocean has never faced such a diverse range of threats. UNDP launches a new call to action— Ocean Innovation Challenge (OIC) to accelerate progress on SDG 14 targets. The OIC seeks innovations that are transferable, replicable and scalable. The Challenge grants range from $50,000 to $250,000. Read more
Climate Bonds Launches Version 3 of the international Climate Bonds Standard - Universal compatibility for global green investment
December 11, 2019 - Climate Bonds has released Version 3.0 of the international Climate Bonds Standard; a significant development for green finance. Standard V3.0 incorporates major upgrades to the existing umbrella guidance for Climate Bonds Certification to meet market growth and demand for enhanced reporting, transparency and harmonisation around green definitions. Read more
COP25: Global investors urge countries to meet climate action goals
December 9, 2019 - More than 630 investors who collectively manage over $37 trillion in assets are calling on governments across the world to step up action to address climate change and achieve the goals of the Paris Agreement. Read more
Central banks and financial regulators are starting to factor in climate change
December, 2019 - Climate change is already a reality. Ever-more-ferocious cyclones and extended droughts lead to the destruction of infrastructure and the disruption of livelihoods and contribute to mass migration. Actions to combat rising temperatures, inadequate though they may have been so far, have the potential to drive dislocation in the business world as fossil fuel giants awaken to the need for renewable sources of energy and automakers accelerate investments in cleaner vehicles. Read more
Fifty Shades of Green - The world needs a new, sustainable financial system to stop runaway climate change
December, 2019 - This year the threats from climate change spurred demonstrations across the world and prompted the parliaments in the United Kingdom and many other countries to declare a “climate emergency.” These actions occurred against a backdrop of record temperatures across Europe and North America, the worst wildfires ever in the Amazon basin, severe tropical storms in Asia, and sea levels that are rising faster than previously thought. Read more
Climate Risk and Financial Systems of Latin America: Regulatory, Supervisory and Industry Practices in the Region and Beyond
December, 2019 - IDB launched a research program on the relationship between climate change and financial markets in the LAC region and published the report Climate Risk and Financial Systems of Latin America: Regulatory, Supervisory and Industry Practices in the Region and Beyond. Read more
Conference on Climate Change and its Impact on the Financial System
December 5&6, 2019 - Conference on Climate Change and its Impact on the Financial System – CEMLA (Centro de Estudios Monetarios Latinoamericanos) was organized in Mexico City to discuss policy and practical experience related to Green Finance and the Climate Change implications on the Financial System.
Click here to view Mr. Daniel M. Schydlowsky's paper Prudential Regulations for Greening the Financial System: Coping with Climate Disasters presented in the Conference.
Launch of Equator Principles - EP4
November 18, 2019 – The latest version of the Equator Principles (EP) - EP4, referencing the IFC Performance Standards, was launched in Singapore with over 100 attendees from Equator Principles Financial Institutions, Development Finance Institutions, and Export Credit Agencies. Read more
Green bond issuance tops $200bn milestone - New global record in green finance: Latest Climate Bonds data
October 21, 2019 – Progressive green bond and loan issuance for 2019 has just passed USD200bn with Climate Bonds analysis calculating the global figure at USD202.2bn as at 22/10/19. Read more
NGFS publishes A Sustainable and Responsible Investment Guide for Central Banks’ Portfolio Management
October 17, 2019 – Climate change is a source of financial risk. The Network for Greening the Financial System (NGFS) encourages central banks and supervisors across the globe to lead by example and include sustainability considerations in their portfolio management, without prejudice to their primary mandates. Therefore the NGFS today publishes A Sustainable and Responsible Investment Guide for Central Banks’ Portfolio Management. Read more
130 Banks Holding USD 47 Trillion in Assets Commit to Climate Action and Sustainability
September 22, 2019 – In a massive boost for climate action and sustainability, leading banks and the United Nations today launched the Principles for Responsible Banking, with 130 banks collectively holding USD 47 trillion in assets, or one third of the global banking sector, signed up. Read more
15 Thai commercial banks to jointly formulate guidelines for responsible lending
August 13, 2019 - In collaboration with 15 commercial banks, the Bank of Thailand will establish guidelines for responsible lending as part of their sustainable business operation. Thai banks are encouraged to lend based on environmental, social and governance (ESG) criteria which will serve as protection against adverse consequences, and thus ease potential problems. Four policies for responsible lending will be put in place within the end of next year, accounting for stakeholder engagement, internal implementation mechanisms as well as transparency.
Click here to view the Sustainable Banking Guidelines Responsible Lending issued by the Thai Bankers' Association.
Bangkok Sustainable Banking Forum 2019
August 13, 2019 - Building upon the momentum from last year’s event, the Bangkok Sustainable Banking Forum 2019 continues to deepen adoption of sustainability practices in the Thai financial industry and to alert the financial industry about imminent Environment, Social, and Governance (ESG) threats that would be sources of financial risks. Audiences include Board of Directors and high level executives of Thai financial institutions and also other relevant stakeholders who would have to work together in Thailand’s journey towards Sustainable Banking.
Financial Stability Review no. 23 - June 2019
The 23rd edition of the Banque de France’s Financial Stability Review is entitled “Greening the financial system: the new frontier”. This review shows the extent of climate change, assesses its potential financial and macroeconomic impacts and highlights the opportunities associated with financing the transition to a low-carbon economy. To meet the challenge of climate change, financial actors, both public and private, have a key role to play in financing this transition, whose amounts are still well below those required.
A Call for Action: Climate Change as a Source of Financial Risk
April 2019 - The Network for Greening the Financial System collectively acknowledges that climate-related risks are a source of financial risk. Some members have extended this analysis to broader environmental risks finding that these are a source of financial risk as well. The members of the NGFS therefore call for collective action and have issued six recommendations in its first comprehensive report. IFC/SBN is an observer of the NGFS, providing collective experience and insights in sustainable finance from the emerging markets.
Emerging Market Green Bonds Report 2018
April 2019 - Amundi and IFC published a new report on green bonds in emerging markets, which specifically addresses current gaps in the green bond market. The four main findings are: (i) capital flow from developed markets to emerging markets has a critical role in combating climate change; (ii) green bonds are an effective financing mechanism with benefits to issuers and investors; (iii) the green bond market is nascent in emerging countries, with the potential for promising growth; and (iv) financial institutions will continue to drive future growth of the green bond market in emerging countries. The report highlights the role of the policy makers in the emerging markets, citing findings and case studies from the SBN report “Creating Green Bond Markets”.
Values at Risk? Environmental and Social Risks in the Financial Sector
Emerging Market Regulators Consult on Recommendations Related to Sustainable Finance
February 1, 2019 - IOSCO´s Growth and Emerging Market Committee (GEMC) published the consultation report Sustainable finance in emerging markets and the role of securities regulators, which proposes 11 recommendations for emerging market member jurisdictions to consider when issuing regulations or guidance regarding sustainable financial instruments. Among other things, the recommendations propose requirements for disclosure of material Environmental, Social and Governance (ESG) specific risks, aimed at enhancing transparency.
FEBRABAN Launches Implementing the TCFD Recommendations: Roadmap for the Brazilian Banking Sector
December 2018 - The Brazilian Federation of Banks (FEBRABAN) implemented the first phase of an institutional project to support Brazilian banks in the adoption of the recommendations published by the Task Force on Climate-related Financial Disclosures (TCFD) of the Financial Stability Board. A roadmap with two types of actions was developed: (i) collective actions by the banking sector through FEBRABAN; and (ii) individual actions by the banks. The full report is available at FEBRABAN website and can be downloaded through the following link: Implementing TCFD Recommendations
EU Consultation and Workshops on Taxonomy
December 3, 2018 – EU launched the 1st round climate mitigation activities. Technical experts and stakeholders can provide feedback on selected economic activities and the proposed criteria for the first sub-set of economic activities expected to make a substantial contribution to climate mitigation under the EU Commission’s taxonomy proposal. Technical experts are invited to register for workshops to provide technical input to a series of activities on the development of new criteria.
United Nations Secretary-General Launches Task Force on Digital Financing of Sustainable Development Goals
November 29, 2018 - United Nations Secretary-General António Guterres today announced the launch of a global task force charged with recommending strategies to harness the potential of financial technology to advance the Sustainable Development Goals. The Task Force on Digital Financing consists of leaders from a range of sectors from both developed and developing countries.
UN Environment and 28 Banks Launch Public Consultation on Principles for Responsible Banking
November 26, 2018 –In a bid to define the banking industry’s role and responsibilities in shaping a sustainable future, UN Environment Finance Initiative (UNEP FI) and 28 banks from around the world are launching the Principles for Responsible Banking for global public consultation today at its Global Roundtable in Paris. By committing to the new framework, banks will be aligning their business with the objectives of the Sustainable Development Goals (SDGs) and the Paris Climate Agreement.
UNEP FI Working with 16 Global Insurers to Better Understand Risk & Implement TEFC Recommendations
November 13, 2018 - UNEP FI announced a partnership with 16 of the world’s largest insurers—representing around 10% of world premium and USD 5 trillion in assets under management—to develop a new generation of risk assessment tools designed to enable the insurance industry to better understand the impacts of climate change on their business.
NGFS Publishes First Progress Report
October 11, 2018 - The Central Banks and Supervisors Network for Greening the Financial System (NGFS), launched at the Paris One Planet Summit on 12 December 2017 held a Plenary meeting in Bali aside the Annual Meetings of the IMF and World Bank Group and published today its first progress report : https://www.banque-france.fr/sites/default/files/media/2018/10/11/818366-ngfs-first-progress-report-20181011.pdf
TCFD Publishes First Status Report While Industry Support Continues to Grow
September 26, 2018 - The Task Force on Climate-related Financial Disclosures (TCFD) published its 2018 Status Report to the Financial Stability Board (FSB) today. The report provides an overview of current disclosure practices and their alignment with the core elements of the TCFD recommendations.
UNDP Launches ‘SDG Impact’ to Help Unlock Investment in Global Goals
September 25, 2018 - A new initiative led by the United Nations Development Programme (UNDP) aims to help channel private investment and capital to meet the vision of the Sustainable Development Goals (SDGs). Called SDG Impact, the initiative, launched today at the 73rd United Nations General Assembly in New York, will work with the private sector on how best to invest in enterprises and markets in ways that help achieve the SDGs, an ambitious blueprint for a world without poverty or inequality.
The Equator Principles Turn 15
September 18, 2018 - The Equator Principles - a global benchmark for sustainable project finance - were created 15 years ago. 94 banks in 37 countries adhere to the Equator Principles, covering more than 80 percent of project finance transactions in emerging markets.
European Commission announces Action Plan for a greener and cleaner economy
March 8, 2018 - On the basis of the recommendations set out by the High-Level Expert Group on sustainable finance (HLEG), the European Commission announced an EU strategy on sustainable finance setting out a roadmap for further work and upcoming actions covering all relevant actors in the financial system.