With the financial sector being at the heart of global markets and economies, it can play a pivotal role in facilitating – or blocking – mechanisms that will support the objectives of the Paris Agreement, in particular Article 2.1c: to make finance flows consistent with a pathway towards greenhouse gas emissions and climate-resilient development.
GIZ is supporting green/sustainable finance initiatives in various localities around the world and is carrying out an extensive study on green / sustainable finance as manifested in country initiatives and financial systems. The study is reviewing financial system elements (e.g. taxonomies, regulations and oversight, and products and services) with a view to providing targeted support towards scaling up, potentially through further GIZ support.
The study includes 4-6 country case studies (South Africa, Mexico, Thailand, Morocco), focusing on initiatives supported by GIZ. The study is assessing the state of green/sustainable financial systems, as well as of GIZ support and that of other donor activities, to support a systematized approach that will identify pathways and recommendations for scaling up green financial system development. The study aims to inform institutions (such as ministries of finance, environment, central banks, regulators, as well as relevant international networks and partnerships), in each case identifying the most relevant audience/s.
OneWorld (in partnership with WINS) carried out the work through desktop review, supported by remote interviews per country and provided an analysis of green financial system development; a country analysis (including both public and private sector initiatives, and GIZ support, stakeholder mapping of the landscape, and analysis of different country approaches).
Thereafter the study provided both general as well as country-specific recommendations for scaling up the green financial system.