Financial systems need to align better with the needs of a resource-efficient, low-carbon economy, according to financial experts and governments taking part in a major inquiry by the UN environment programme (UNEP).
It analysed the financial systems of countries with major business centres, such as the UK and US, and developing economies, including Brazil, China and South Africa.
Participants focused on five key barriers, including: the continuous creation of unchecked risks despite progress in regulation; financial regulations that favour short-term investments; and emerging markets with less access to global capital flows. Initial findings highlight the leading role played by developing nations.
These include: Brazil, where the central bank has established environmental risk management requirements for banks; South Africa, where the stock exchange requires listed companies to report on sustainability performance; and Indonesia, where the financial services authority has published a 10-year roadmap for sustainable finance. The full report is due in October.