Global financial markets now find themselves at an inflection point distinguished by a 60% decline in cross-border capital flows since the 2007 peak, a 32% share of global capital flows to emerging economies in 2012 (compared to 5% in 2000), and US$ 1.9 trillion in ‘South-South’ foreign investments between emerging economies. These trends may result in greater dependence by lending institutions on domestic markets, the emergence of a more sustainable approach to financial market development and global integration and perhaps, even the establishment of a BRICS bank. A financing gap has emerged, given poor disbursement of public funds to support, for example, REDD+ activities, and a limited forest carbon market. A robust and predictable system for mobilizing financial resources from various sources is needed to stimulate investments in smallholders and landscapes for green returns. Opportunities exist to catalyze both public and private investment to finance sustainable land use and actions to address the drivers of deforestation.
This panel presented four innovative approaches to financing that are being developed in Southeast Asia to promote green prosperity and the transition to low-carbon and more inclusive and equitable development.
Presentations from the Session:
Key questions addressed in this session:
- How can we stimulate investments in smallholders and landscapes for green returns?
- What measures can be introduced by government to reduce the costs of doing business?
- What incentives and/or removal of perverse incentives are needed to promote the transition to low-carbon and more inclusive and equitable development?
- UNEP 2011. Forests in a green economy: a synthesis.
- RRI/The Munden Project, 2012. The Financial Risks of Insecure Land Tenure: An Investment View.
- Kubiszewski, I., Costanza, R., Franco, C., Lawn, P., Talberth, J., Jackson, T. and Aylmer, C. (2013). Beyond GDP: Measuring and achieving global genuine progress. Ecological Economics 93: 57-68
- Buchner,B. et al, 2011. The Landscape of Climate Finance. A CPI Report
- Global Green Growth Institute, 2013. ‘Green Growth Program. Prioritizing Investments: Delivering Green Growth’