Delivering the Green Economy Through Financial Policy: Technical Paper

The paper aims to provide a solid overview of the current status quo and to serve as a basis for discussion among regulators, financers and political decision makers on whether financial regulation should be used as an effective tool to redirect capital flows. Taking into account the current status of the UNEP Inquiry as well as the purpose of this paper to provide a basis for an informed discussion, we refrain from using the term “best practices” but rather restrict ourselves to describing our observations, i.e. describing current practices, and providing food for thought at this point in time. This paper does not, for the most part, assess the broader economic policy framework that could directly or indirectly impact the financial sector and influence its activities in a greener direction (or vice-versa). Given that the financial sector is a key player in a modern market economy, policies that drive towards sustainability will certainly influence financial sector behaviour and capital allocation.