The rate of change is dizzying. Public appetite for action on climate and environment is growing fast in Europe and internationally, gaining a stronger foothold in mainstream politics.
As the concentration of CO2 in the atmosphere pushes towards 415ppm and the IPBES warns that only a transformation of current economic and financial practices can maintain the ecosystems human societies depend upon, diverse stakeholders are coalescing to support action. While central banks have promised action to preserve global financial stability in the face of climate change, social movements including Sunrise, Extinction Rebellion and the School Strikes are rising up to stake claims on behalf of those who have previously been lacking voice.
The shift in sentiment feels powerful, but will it lead to lasting impact and the change we need? What financial reforms are required to achieve transformative change in the real economy for sustainability, prosperity and resilience? In this month’s newsletter we look at a range of current and emerging issues to support change for financing the necessary transition.
With a new Parliament and Commission, Europe has an opportunity to create a bolder vision for finance in Europe. We kick off with recommendations for further integrating disaster risk, climate change adaptation and resilience into Europe’s Sustainable Finance Action Plan, made in a joint UNDRR-E3G report launching today at the UN Global Platform on Disaster Risk Reduction. Next, Tom Jess and Sandrine Dixson-Declève consider the emerging European green investment taxonomy, charting a course for next steps. The UK too is going through rapid change: Dileimy Orozco and George Triggs suggest priorities for the new Green Finance Strategy. Finally, George Triggs looks forward to London Climate Action Week in July.
These different opportunities present points of leverage that could lead to cascading effects through the financial system to meet the needs of society and the economy. This is a time for finding new solutions to old problems that have become urgent.
Thanks for reading,
Program Leader, Sustainable Finance