IISD is influencing the way forward for finance. Our work varies from targeted, in-depth assessments of sustainability-specific monetary transactions to broader analyses that tackle the important function that finance has to play in our sustainable future.
IISD’s work on finance for the sustainable future focuses on three major areas:
Guaranteeing sufficient finance is obtainable is essential for making progress towards attaining the Paris settlement’s goals. The estimated international financing hole for adaptation is between USD 160-340 billion per yr by way of 2030. The hole for mitigation over the identical time interval is estimated at USD 850 billion per yr. IISD is working with coverage makers and monetary market contributors to drive financing for local weather adaptation and mitigation to shut this financing hole.
Primarily based on current estimates, USD 133 billion of financing is at the moment going into nature-based options (NbS) yearly. On the similar time, the financing wants of NbS are about USD 536 billion yearly. Which means that financing from each private and non-private sources must be scaled up 4 instances the quantity invested at this time. IISD is working with related stakeholders and offering the information, data, and instruments wanted to scale up financing for nature-based options, and particularly for nature-based infrastructure (NBI). IISD serves because the host of the NBI World Useful resource Centre, a joint undertaking with the World Setting Facility (GEF), the Mava Basis, and the United Nations Industrial Growth Group (UNIDO).
The social facets of sustainability have traditionally acquired considerably much less consideration in sustainable investing than environmental goals resembling local weather change adaptation and mitigation. This development can be mirrored in new sustainable debt issuance. Out of the USD 1.6 trillion new points in 2021, there have been solely USD 165 billion social bonds (10%), even after a nine-fold leap in issuance from the earlier yr (1%). IISD is supporting the combination of social sustainability goals in investments by offering the required experience and instruments to monetary market contributors and coverage makers.
These focus areas shall be guided by the next goals:
- Redefining worth – Collaborating with policymakers and monetary market contributors to advocate for and work in direction of the combination of environmental and social influence into monetary decision-making and devices.
- Triggering monetary innovation – Figuring out alternatives and dealing with companions to design financing options and catalyze the subsequent technology of monetary innovation.
- Bettering sustainability efficiency – Advising the monetary sector and authorities companions on the standard of sustainable investments and enhancing transparency on sustainability claims.