1887

Global Outlook on Financing for Sustainable Development 2021

A New Way to Invest for People and Planet

image of Global Outlook on Financing for Sustainable Development 2021

The Global Outlook on Financing for Sustainable Development 2021 calls for collective action to address both the short-term collapse in resources of developing countries as well as long-term strategies to build back better following the outbreak of the COVID-19 pandemic. The financing gap to achieve the Sustainable Development Goals (SDGs) in developing countries was estimated at several trillions of dollars annually before the pandemic. The report demonstrates that progress to leave no one behind has since reversed, and the international community faces unprecedented challenges to implement the holistic financing strategy set out in the Addis Ababa Action Agenda (AAAA). The report finds that trillions of dollars in financial assets held by asset managers, banks and institutional investors are contributing to inequalities and unsustainable practices. It highlights the need to enhance the quality of financing through better incentives, accountability and transparency mechanisms, integrating the long-term risks of climate change, global health, and other non-financial factors into investment decisions. The report concludes with a plan of action for all actors to work jointly to reduce market failures in the global financial system and to seize opportunities to align financing in support of the 2030 Agenda for sustainable development.

English

The next frontier to finance sustainable development

Despite the global financial crisis and coronavirus (COVID-19) pandemic, the value of financial assets held by new actors in global capital markets continues to increase. The financing gap to achieve the 2030 Agenda represents only 1% of the hundreds of trillions of dollars held in the global financial system. However, financing is not aligned in support of the global goals, as demonstrated by rising equalities and the lack of accountability for measures of sustainability. That the root cause of the crisis is not financial makes it all the more urgent to better understand environmental, social and governance factors that impact the long-term risk-adjusted returns on investments. This chapter explores how government leaders are taking action to advance alignment of the global financial system in favour of more resilient, inclusive and sustainable development.

English

Graphs

This is a required field
Please enter a valid email address
Approval was a Success
Invalid data
An Error Occurred
Approval was partially successful, following selected items could not be processed due to error