The number of policy and regulatory measures backing green finance has more than doubled since 2015, according to figures released by the UN Environment Agency.
The measures database from the UN Environment Agency (UNEP) and the Green Growth Knowledge Partnership (GGKP) shows that there are now at least 391 national and sub-national policy and regulatory measures on green finance in place around the world. This represents a 106% increase since 2015. A record 79 new measures were implemented or announced in 2019 alone, demonstrating that the green finance movement is only accelerating, according to UNEP press release.
“Many transformative plans are being put in place to create zero-carbon, biodiversity-friendly societies and economies,” UNEP Executive Director Inger Andersen said in a press release. “These plans need the full and unequivocal backing of the global financial system. So while it is encouraging to see the acceleration of green financing, the financial system and those who regulate it, need to urgently step up and drive huge cuts in greenhouse gas emissions.”
The figures from the database demonstrate progress in certain key areas. For example, reporting and disclosure for policy and regulatory action comprise roughly one quarter of all measures implemented, while an increasing number of measures are targeting multiple asset classes, with policy frameworks tackling systemic issues such as climate risk across banking, investment and insurance.
More than two-thirds of measures are being implemented in developed economics.
“Policy and regulatory action is a critical driver of the transition to green and sustainable finance. With this database, we are able to map the ways in which policymakers and regulators are influencing market practice,” said UNEP’s Jeremy McDaniels, who developed the database. “This type of analysis can help public authorities learn from others’ experiences, raise ambition and strengthen understanding of how their actions are leading to positive changes.”
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