These countries are leading the way in green finance

green finance

(Ian Van Landuyt, Unsplash)

This article is brought to you thanks to the collaboration of The European Sting with the World Economic Forum.

Author: Katharine Rooney, Senior Writer, Formative Content


What if more money went into financing projects and policies that help the planet?

Creating a greener economy requires significant investment, whether that is funding a new network of electric buses, the creation of a solar farm, or building power plants that run on renewable energy.

And that means that the green bond market – money borrowed to invest in environmentally-friendly projects – is a good measure of the progress that countries are making on tackling climate change.

Since 2007, when the first green bonds were issued to help finance climate change solutions, the market has grown to reach a global total of $521 bn. And nearly 200 countries committed to mobilizing green finance under the terms of the 2015 Paris Agreement on climate change

The transition to a low-carbon, sustainable approach to growth could lead to an economic boost of $26 trillion up to 2030 and help create more than 65 million new jobs, according to the Global Commission on the Economy and Climate.

The financing of sustainable development is one of the key themes at this year’s Sustainable Development Impact Summit, taking place during the United Nations General Assembly at the end of September.

What is the World Economic Forum’s Sustainable Development Impact summit?

It’s an annual meeting featuring top examples of public-private cooperation and Fourth Industrial Revolution technologies being used to develop the sustainable development agenda.

It runs alongside the United Nations General Assembly, which this year features a one-day climate summit. This is timely given rising public fears – and citizen action – over weather conditions, pollution, ocean health and dwindling wildlife. It also reflects the understanding of the growing business case for action.

The UN’s Strategic Development Goals and the Paris Agreement provide the architecture for resolving many of these challenges. But to achieve this, we need to change the patterns of production, operation and consumption.

The World Economic Forum’s work is key, with the summit offering the opportunity to debate, discuss and engage on these issues at a global policy level.

Here’s what some of the countries leading the way in green finance are doing.

United States

The US is head of the pack when it comes to green bonds, with $118.6 billion issued in 2018. Total US-based managed assets using sustainable strategies grew from $8.7 trillion at the start of 2016 to $12 trillion at the start of 2018 – an increase of 38%, according to the Global Sustainable Investment Review. This spike is reportedly being led by client demand, with 40% of US fund managers pointing to the UN Sustainable Development Goals as motivation for new investment in sustainable schemes.

France

In 2017, France issued its first sovereign green bond in a bid to make Paris a financial centre for economic transition. The bond allowed France to borrow 7 billion euros to support clean energy projects. At the time, it was believed to be the largest-scale issuance with the longest maturity date ever seen on the young green bond market.

Image: Climate Bonds Initiative

China

At a G20 summit held in 2016 in Hangzhou, every government head agreed to a shared goal of promoting green finance – a win for China that followed its own plan to pursue a green finance policy. China hopes to encourage greater private investment in green sectors to support a low-carbon transformation for its economy; with policy incentives such as a green development fund.

United Kingdom

In July 2019, the UK government announced a Green Finance Strategy, with plans to build regulatory frameworks for green finance alongside improved access to investment for green projects. The government is working with industry to establish a set of Sustainable Finance Standards – making sure that all of the financial risks and opportunities from climate and environmental factors are woven into investment decision-making.

the sting Milestones

Featured Stings

Can we feed everyone without unleashing disaster? Read on

These campaigners want to give a quarter of the UK back to nature

How to build a more resilient and inclusive global system

Stopping antimicrobial resistance would cost just USD 2 per person a year

UN chief pays tribute to ‘enduring contributions’ to regional, international diplomacy of Oman’s late Sultan Qaboos

Will the French let Macron destroy their party political system?

Iran: UN rights chief ‘deeply disturbed’ by continuing executions of juvenile offenders

Good Governance in developing modern quality infrastructure systems

Parental leave: why we can’t wait a century for equal rights for women

Is the European Banking Union an impossible task?

How to Create a Clear Vision For the Future of Healthcare

5 ways to reduce risk while fuelling IT innovation and growth

A hot autumn after a cool summer for Europe

Peru is building a new international airport near Machu Picchu – and archaeologists are worried

Coronavirus: Commission mobilises €123 million for research and innovation to combat the threat of variants

European Young Innovators Forum @ European Business Summit 2014: Europe for StartUps, vision 2020

UN postal agency ‘regrets’ US withdrawal

How to build an entrepreneurial university

Universal access to energy is a major challenge for the Arab world. Here’s why

We finally have a life-saving vaccine for Ebola

Greece may offer to China a European gateway

Death as a Global Public Health Issue

‘No safe level of air pollution’: Major study links cardiac arrests with fine particulate matter exposure

There are more than 1 billion guns in the world and this is who owns them

An economist explains the pros and cons of globalization

This is what chief economists think about the global economy right now

Do electronic cigarettes produce adverse health effects?

State aid: Commission refers Greece to Court for failure to recover incompatible State aid from mining company Larco

Donald Tusk presents EU summit conclusions for last time

Greta Thunberg at #DavosAgenda: Here’s how climate experts responded to her speech

Conditions deteriorating alarmingly in Yemen, warns senior UN official

The Commission offers exit from the EU budget stalemate

70 years after the Universal Declaration of Human Rights, this is why we need dignity more than ever

The EU has to prove it can remain one piece

‘Complacency’ a factor in stagnating global vaccination rates, warn UN health chiefs

Drastic deterioration in security across Burkina Faso as 70,000 flee their homes in past two months, UN warns

Eurozone again whipped by Greek winds

Gender inequities in the medical field: an urgent issue

EU citizens disenchanted with Economic and Monetary Union over rising poverty and high unemployment

The unique frequency of felling the gab on women’s rights by medical students

Pakistan has just planted over a billion trees

Technology can help solve the climate crisis – but it will need our help

Kazakhstan continues to push for a nuclear-free world

Mobile 360 Series – Russia & CIS: Empowering the Digital Economy

The miserables and the untouchables of the economic crisis

Google case: A turning point in competition rules enforcement

What we can learn from Asia’s courts of the future

How technology is leading us to new climate change solutions

Closing the gaps in accelerating women’s rights: the role of medical students

Eurasian Union begins: the giant modelled on the EU is Moscow’s biggest challenge

5 ways to bridge the global health worker shortage

What are plastics and why do they matter? An explainer

How COVID-19 shows the urgent need to address the cyber poverty gap

The shrinking Arctic ice protects us all. It’s time to act

Why Eurozone urgently needs the ECB to print and distribute at least €500 billion

Is this the way to finally beat corruption?

Is decentralization a panacea for development?

The next Google in biotech: will it be Chinese?

Understanding and demystifying the new outbreak of Coronavirus

My disability, my identity

Intervene, don’t overthink – the new mantra of systems design

These are the cities with the biggest carbon footprints

G20 LIVE: the EU trade gold rush continues as EU and Australia agree to launch Free Trade Agreement (FTA) live from Antalya Turkey

Everything you need to know about water

More Stings?

Comments

  1. A shame that US politics does not follow with US investment in terms of green energies

Speak your Mind Here

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s