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.
Green Bonds, Green Boundaries: Building China’s green financial system on a solid foundation
China's introduction of guidelines for green bonds marks an ambitious move to ramp-up environmentally friendly investment.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