Green Financing for Sustainable Development

To successfully align the financial system with sustainability goals, financial governance should target the following goals:

•  Raising awareness among regulators and market participants in the financial sector for environmental and climate risks. 
• Developing capacities in the financial industry for environmental risk analysis and management through knowledge building and sharing. 
• Building up the capacities in the financial industry needed to develop sustainable financing practices and new lending instruments for financing sustainable projects such as renewable energy.
• Enhancing transparency through disclosure requirements.
• Providing incentives, where needed, to BFIs and NBFIs for the financing of green projects.
• Supporting the development of new market segments such as the green bond market or climate risk insurance
• Developing long-term, local currency refinancing sources for banks to enable them to extend long-term credit.