ESG | GREEN FINANCE
ASIA AND THE PACIFIC IS HOME TO SIGNIFICANTLY LARGE POOLS OF PRIVATE CAPITAL CAPABLE OF BRIDGING THE GAP IN SUSTAINABLE FINANCE
Subathirai Sivakumaran United Nations ’ ESCAP Finance Chief for Development
Asia Pacific holds the key to SDG success or failure At the ‘ half-time ’ stage between 2015 and 2030 , the region is not on track to achieve any of the 17 UN SDGs . While there has been progress on all measurable goals , one significant goal has actually seen the region slip into reverse – unlucky for some , or rather all , that is goal 13 on climate action .
Policymakers , regulators and private finance need to plug the gap and accelerate action .
There are many challenges that each of these stakeholders face , but the interesting thing that the report points out is how interconnected these stakeholders are , and how interconnected their challenges are .
“ Whether it is consistent and coherent regulation between say the finance and energy sector , or whether it is policy coherence between finance ministries and the environmental ministries , the importance of integrated , cohesive action that systematically incentivises the supply and demand for capital to flow into
SDG and climate action areas cannot be overstated ,” says Sivakumaran .
The scale of this coordination required at the country level constitutes a profound challenge to ensuring a timely net zero transition . Importantly , consistency and coherence in regulation and policy has a profound impact on the cost of capital , and a country ’ s ability to mobilise public and private capital .
102 December 2023