The financial system needs to serve as the nervous system of the global economy rather than its master.
The costs of the 2007 global financial crisis illustrate this point. While industry lobbyists may point out that the bailouts are “only” equivalent to 1 per cent of gross domestic product in the United States, the multiplier costs of the ongoing recession and public debt debacle are substantial.
The crux of IISD's work on finance stems from our conviction that the root causes of the 2007 crisis remain largely unaddressed. While we welcome the raft of regulatory and governance reforms on both sides of the Atlantic, they focus on potentially making the existing system safer rather than addressing the fault lines that led to the 2007 crisis. The ongoing reforms also failed to increase fiduciary responsibility across the many actors in the financial services sector. Peer-to-peer fiduciary responsibility is critical to ensuring the stability of financial markets, both nationally and globally.
Broader structural reforms are therefore needed if the financial system and sector are to deliver on sustainable development. And these reforms need to be implemented in a coordinated manner across industrialized and lower-income geographies. Only then can we level the playing field across global financial markets and reward prudent regulation, good corporate governance and long-term value creation.
Sustainable Finance Key to Low-Carbon Economic Transition
Canada’s Expert Panel on Sustainable Finance released its interim report yesterday with a clear message that harnessing the country’s financial assets is essential for a successful low-carbon transition.Read More
Cleaning up Toxic Soils in China: A trillion-dollar question
In its latest effort to address environmental problems, China has adopted its first soil pollution law. However, how to finance the remediation of the damage already done remains a big question.Read More
Financing Soil Remediation: Exploring the use of financing instruments to blend public and private capital
A collection of 17 case studies on a variety of financing instruments that blend public and private capital that could be used to finance the remediation of contaminated soil.Read More
Green Finance Approaches to Soil Remediation: International examples
A collection of seven case studies on different financing instruments used to support soil remediation projects.Read More
Financing Models for Soil Remediation in China
This report examines seven different types of soil remediation projects in China and provides a "state-of-play" survey of financing models for soil rehabilitation in China.Read More
Financing High Performance Climate Adaptation in Agriculture: Climate Bonds for Multi-Functional Water Harvesting Infrastructure on the Canadian Prairies
This article explores distributed water harvesting, a climate change adaptation strategy that can offer the co-benefit of enhancing ecosystem services.Read More
Financing National Adaptation Plan (NAP) Processes: Contributing to the achievement of nationally determined contribution (NDC) adaptation goals
This guidance note aims to assist countries with determining how to secure the financing for their National Adaptation Plan (NAP) processes.Read More
Soil Remediation in China: How a huge pollution problem is putting the green finance movement to the test
IISD, with Chinese and international partners, is testing the potential of the entire spectrum of green finance approaches to deal with China’s legacy of toxic soils and the urgent need to restore them to health and productivity.Read More
China's Exceptional Commitment to Green Finance
Today China is the unquestioned world leader in green finance, and it is using its example to inspire and impress other countries worldwide. And all of this has taken place in a remarkably short period of time.Read More
Roadmap for China: Using Green Securitisation, Tax Incentives and Credit Enhancements to Scale Green Bonds
This paper provides specific actions for China’s policymakers to put in place instruments and incentives for green bonds, with a particular focus on how to grow a green securitisation market in China that can access international capital. Specific actions for China draw on domestic and international experience.Read More