Finance for a Green Economy

The document argues that a successful green economy transition requires a fundamental overhaul of the global financial architecture to move away from short-termism and 'brown' investments. It advocates for the mainstreaming of natural capital accounting to better value ecosystem services and the adoption of inclusive policy processes that protect marginalised groups and workers. Additionally, it emphasises the critical role of SMEs and informal businesses in driving local innovation, noting that approximately 70% of MSMEs in emerging markets lack access to credit, creating a 'missing middle' financing gap.

• The current financial system is hindered by short-termism, which prioritises immediate profit over sustainable investments and leaves fossil fuel companies vulnerable to stranded assets.
• There is a significant funding gap for the Sustainable Development Goals (SDGs), estimated at $2.5 trillion per year, necessitating decentralized financing that reaches local governments and community organisations.
• To better manage the economy's relationship with nature, governments should adopt a 'capitals approach' and natural capital accounting, moving beyond GDP to account for natural, produced, human, and social capital.
• A truly inclusive green transition must address the needs of marginalised groups, including small-scale farmers, coal miners, and informal waste-pickers, to ensure political legitimacy and social stability.
• Small and medium-sized enterprises (SMEs) are vital for local green innovation and employment, but they face a 'missing middle' financing gap, with the World Bank estimating that about 70% of MSMEs in emerging markets lack credit access.
• Financial stability could be improved by implementing a 'brown penalising factor' to make it harder for banks to leverage loans for environmentally destructive investments, rather than using a 'green supporting factor'.

APA

Green Economy Coalition (n.d.). Finance for a Green Economy. https://www.greeneconomycoalition.org/assets/reports/Global-Meeting-2019-Combined-Policy-Briefings.pdf

Chicago

Green Economy Coalition. Finance for a Green Economy. n.d. https://www.greeneconomycoalition.org/assets/reports/Global-Meeting-2019-Combined-Policy-Briefings.pdf.

Wikipedia

{{cite report |author=Green Economy Coalition |title=Finance for a Green Economy |url=https://www.greeneconomycoalition.org/assets/reports/Global-Meeting-2019-Combined-Policy-Briefings.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{greeneconomycoalitionndfinance, author = {{Green Economy Coalition}}, title = {{Finance for a Green Economy}}, institution = {Green Economy Coalition}, url = {https://www.greeneconomycoalition.org/assets/reports/Global-Meeting-2019-Combined-Policy-Briefings.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }