Sustainable Finance

The Policy Initiative on Sustainable Finance was launched in June 2016 and currently covers two core themes: (i) sustainable infrastructure finance and (ii) greening the banking system.

(I) Sustainable Infrastructure Finance:

At the EPF-IISD Roundtable on Sustainable Infrastructure Development and Finance the new working group on sustainable infrastructure finance was formed. One of the key outcomes of the first roundtable discussion was the identification of the lack of a clear and tangible business case for private financiers to invest in sustainable infrastructure as a major impediment for effective sustainable infrastructure development. The working group therefore focuses on developing practical guidelines for stakeholders such as institutional investors, infrastructure project developers, governments etc., and identifying roles and intervention points for these stakeholders in bringing forward sustainable infrastructure finance. This may include, for instance, adequate de-risking mechanisms provided by development finance institutions to crowd-in private investors. For more information on the Policy Initiative on Sustainable Infrastructure, read here.

Money growing concept,Business success concept,Trees growing on pile of coins money over sun flare silhouette style; Shutterstock ID 250154119; PO: Konferenzmaterial(II) Greening the Banking System

Two GIZ programmes, the Emerging Market Sustainability Dialogues (EMSD) and the Financing for Sustainable Development project, jointly launched a Call for Proposals on the theme “Think AAAA: Translating the Addis Agenda into Practice”. One of the two winning proposals was “Mobilizing Private Capital for Investments in Green Energy” by EPF member Observer Research Foundation (ORF) from India, the Centre for Chinese Studies at Stellenbosch University of South Africa, and the Poize Institute for Women’s Policy Research from Nigeria. With the proposal focussing on the greening of banking standards, and Basel III in particular, it sets the starting point for EPF’s work on greening the banking system.

In addition to the two abovementioned core themes, EPF works on sustainable finance issues closely together with its sister network, the Emerging Markets Dialogue on Finance which has the objective to redirect capital towards climate- and eco-friendly investments in order to enable the transformation towards low-carbon, resource-efficient economies. This includes, for instance, the development of environmental risk management and stress testing tools as well as the support of sustainable green bond market growth in G20 emerging economies.

Within the policy initiative the policy report “Improving the Investor Base for Local Currency Bond Markets in China, India and Indonesia” was published. The study has been developed through the joint effort of three think tanks: the Belgium-based Centre for European Policy Studies (CEPS), the India-based Observer Research Foundation (ORF), and the Indonesia-based Economic Research Institute for ASEAN and East Asia (ERIA). In compiling this report, policy-makers, think tanks, financial regulators and private sector representatives from Europe and Asia came together to develop solutions to enhance peer-learning and knowledge exchange on local currency bond markets in Asia. China, India and Indonesia are in need of alternative sources of finance. In the coming years, these three countries will need vast amounts of capital for, among others, bringing investments in infrastructure to the level that optimises economic growth. The study looks at the possibility to further develop the local currency bond markets in general, and to broaden and deepen the institutional investor base in China, India and Indonesia in particular.

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    Launch of Policy Initiative

    Launch of policy initiative at EPF-IISD-Roundtable in Geneva and through Call for Proposals ThinkAAAA.

    June 2016
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    Concept Note for Joint Policy Papers

    Research Project Proposals ThinkAAAA have been selected.

    2016
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    Peer-review of Draft Working Papers
    2017
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    Publication of Policy Papers
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    Integration into Reform Agendas

Members of the Policy Initiative:
World Resources Institute
Brookings
IISD
ORF
Center for Chinese Studies
Poize Institute for Women’s Policy Research

EPF | Economic Policy Forum

EPF | Economic Policy Forum