To accelerate the transition, increased mobilisation of sustainable finance is needed to fund mitigation initiatives such as clean energy, energy efficiency and sustainable transport, and adaptation initiatives such as disaster management, infrastructure upgrade and sustainable land use. As markets advance in factoring ESG into risk-adjusted returns and more sustainable funds build competitive performance records, the lingering doubts about sustainable finance will diminish. ChallengesThe challenges in driving sustainable finance lie in having a clear direction and incentives to pivot from traditional investing strategies. Successful sustainable finance strategies will be those that are actionable. It is not just a matter of figuring out the right policies, but of identifying the right actions to make sustainable finance a lever for growth.

Source: The Edge Markets May 15, 2021 04:24 UTC