29 May 2019
Ulrich highlights the urgency to mainstream sustainable finance and end brown finance on a panel on financing for sustainable development.
Ulrich Volz, Head of the SOAS Department of Economics and Founding Director of the SOAS Centre for Sustainable Finance, spoke at the T20 Summit in Tokyo. The Think20 (T20) is convening leading scholars to drive policy innovation to help G20 Leaders address pressing global challenges and seek a sustainable, inclusive and resilient society. Ulrich spoke on a panel on financing for sustainable development, where he highlighted the urgency to mainstream sustainable finance. Ulrich put forward three recommendations. First, although international investments will have to play an important role in catalysing sustainable investment in developing and emerging economies, the majority of investment will have to be financed from domestic sources. Focus should be thus given to strengthening domestic resource mobilisation. Second, it is not only imperative to advance sustainable finance, it is also crucial to stop brown finance, including coal financing. Third, climate vulnerable economies already have to pay a risk premium on their borrowing due to their vulnerability, and the problem will get worse with climate change advancing. These countries will need international support to enhance resilience investment, which will also contribute to mitigating the cost of capital problem.
From left to right: Hiroshi Watanabe (Institute for International Monetary Affairs), Homi Kharas (Brookings Institution) Ulrich Volz (SOAS), Naoko Ishii (Global Environment Facility), José Siaba Serrate (Argentine Council for Foreign Relations)