G20 calls for boosting green finance

At the G20 Summit in Hangzhou, China. Author: Narendra Modi. License: Attribution-ShareAlike 2.0 Generic.

September 7 (SeeNews) - Global leaders have asked the International Finance Corporation (IFC)-supported Sustainable Banking Network (SBN) and others to help boost green finance globally.

At the G20 Summit in Hangzhou, China, they made recommendations on how to do that, including asking SBN to pay more attention to knowledge sharing, institutional capacity building and expanding its membership.

"We believe efforts could be made to provide clear strategic policy signals and frameworks, promote voluntary principles for green finance, expand learning networks for capacity building, support the development of local green bond markets, promote international collaboration to facilitate cross-border investment in green bonds, encourage and facilitate knowledge sharing on environmental and financial risks, and improve the measurement of green finance activities and their impacts," says a communique by the G20 leaders.

Currently, SBM counts 25 member countries of which 12 have already prepared measures to add environmental and social risk assessment to core operations of banks, channel funds to renewable and energy efficiency projects, and report on greenhouse gas emission levels within the portfolios of lenders, IFC said in a statement.

Less than 10% of today’s roughly USD 50 trillion (EUR 44.45trn) in banking assets across emerging markets relate to green finance. SBN’s members account for USD 41.5 trillion of that.

(USD 1.0 = EUR 0.889)

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