China is following ambitious green finance plans – also for its investments overseas. But some standards are too low and should be tightened. So far, coal investments have also been considered green if the projects are "cleaner".
For Canada, the concept of a sustainable finance is still relatively new. But its importance is growing steadily and can become a model of success for the country.
Already in 2015, France adopted a law on climate risk disclosure paving the way for protecting economic systems from the consequences of climate change. But others need to follow.
The role sustainable lifestyles can play in achieving a paradigm shift to sustainability is acknowledged in both the Sustainable Development Goals and the Paris Agreement of 2015. They can be defined as “responsible living with our total surrounding and ourselves”, thus including aspects like global equity (see previous blogpost). Nevertheless, the vast majority of scientific literature focuses on ecological sustainability.
The small country in the heart of Europe portraits itself as a leader in "sustainable finance". Already in 2007, the first green bonds were issued and now there is also a "green" stock exchange. However, demand and reality do not coincide enough.
The year 2019 will be key for future climate policy in Germany and Europe. Finance plays a key role in improving climate protection and sustainable growth.
To this end, Germany should learn from pioneering countries for “Green Finance”. In the seven articles in our series, international authors will therefore explain their country's approach towards a green financial system, addressing opportunities, hurdles and unanswered questions.
Multilateral Development Banks (MDBs) can play a critical role in limiting climate change and helping communities adapt to its impacts. Since 2011, they have provided nearly $200 billion in finance for climate change mitigation and adaptation (so-called “climate finance”). The World Bank Group’s recent announcement that it will increase its climate-related investments means this number is likely to grow. But while climate finance is important, it makes up less than a quarter of all finance provided by the MDBs. The rest goes to activities that may (or may not) undermine climate goals.
In November 2015, Saúl Luciano Lliuya, a Peruvian farmer living in Huaraz in Peru, filed a lawsuit in Germany against RWE, Germany’s largest electricity producer. Mr Lliuya claims that his house in the village of Huaraz is at imminent risk of being damaged or destroyed due to an outburst flood from a glacial lake, caused by the melting of glaciers linked to climate change.
In June 2018, the European Commission installed a Technical Expert Group to develop a classification for sustainable finance. That human rights considerations are almost entirely absent from the group’s mandate considerably weakens the current approach, criticises Germanwatch alongside other pressure groups.
In the beginning of July, Germanwatch published its Kosovo research study “Phasing in Renewables“ and discussed it in Pristina with development organisations, ministries, business, NGOs and academia. Kosovo faces quite typical challenges of the Western Balkans, being heavily reliant on lignite use for power generation and struggling with serious social and economic problems.