Shifting the global economy onto a low-carbon and climate resilient development pathway requires an investment of many billions of dollars. To achieve this, both Governments and key financial actors must commit to massively scaling up public and private financing to meet the growing challenge of climate change.
Roadmaps for Green & Sustainable Finance
One of the key insights from the G20’s work on green finance on 2016 was that governments need to be clearer about the policy signals they send to financiers about their plans for climate action and sustainable development. With the Paris Agreement now in force, the focus in 2017 will shift to how the Nationally Determined Contributions (NDCs) that set out each country’s goals can be turned into clear investment pipelines. What is key to these roadmaps is making the bridge between high-level national targets and the technical details of how money actually flows across banking, capital markets, insurance and investment.
Action is needed soon to reduce greenhouse gas emissions as well as help countries build resilience and prepare for a world of dramatic climate and weather extremes. Mobilizing finance for climate action is a priority, and a robust price on carbon is one of the most effective strategies to unlock private investment. A strong price signal in all major economies—in the form of emissions trading systems, carbon taxes or other mechanisms—will direct financial flows away from fossil fuels and advance the growing global market for energy efficiency and clean energy.