Finance for a Green Economy

The document outlines the necessity of reforming financial systems to meet climate targets and support the Sustainable Development Goals (SDGs). It advocates for a shift away from short-termism and 'brown' investments toward a system that serves society's long-term needs. Key proposals include the use of 'blended' finance to de-risk investments, decentralized financing to reach local organizations, and the implementation of a 'brown penalising factor' to discourage unsustainable lending. The brief also highlights the role of the 2019 PAGE Ministerial and initiatives like the UNEP Finance Inquiry in shaping this transition.

• The transition to a green economy requires not only new funding but also a fundamental reform of financial architecture to move away from short-termism, which prioritizes immediate profit over sustainable investments and risks the creation of stranded assets for fossil fuel companies.
• To address the estimated $2.5 trillion annual funding gap for the Sustainable Development Goals (SDGs), the document suggests using decentralized financing to put funds directly into the hands of NGOs, community organizations, micro-enterprises, and local governments to bypass the barriers faced by larger funds.
• The brief proposes specific regulatory and macroprudential tools to steer finance, including 'environmental and ethical stress testing' of bank balance sheets and the adoption of a 'brown penalising factor' to make it more difficult for banks to hold and leverage loans for unsustainable activities, as an alternative to a 'green supporting factor'.
• There is a growing demand from individuals for investment transparency and sustainability regulations that would allow them to divest from 'brown' investments and understand the true environmental impact of their pensions and savings.

APA

Green Economy Coalition (n.d.). Finance for a Green Economy. https://www.greeneconomycoalition.org/assets/reports/Cape-Town-Global-Meet-2019/PAGE-GEC-finance-policy-briefing_final.pdf

Chicago

Green Economy Coalition. Finance for a Green Economy. n.d. https://www.greeneconomycoalition.org/assets/reports/Cape-Town-Global-Meet-2019/PAGE-GEC-finance-policy-briefing_final.pdf.

Wikipedia

{{cite report |author=Green Economy Coalition |title=Finance for a Green Economy |url=https://www.greeneconomycoalition.org/assets/reports/Cape-Town-Global-Meet-2019/PAGE-GEC-finance-policy-briefing_final.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/Cape-Town-Global-Meet-2019/PAGE-GEC-finance-policy-briefing_final.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }