G20 3rd Finance Minister and Central Banks Meeting - Session IV: Climate finance
25 July 2024
Your excellencies,
Much has already been said, so allow me to just add one quick point.
According to our latest World Investment Report, the sustainable finance market is reaching a new stage of maturity.
In 2023, we witnessed a 20% surge in the value of sustainable investment products, reaching over 7 trillion dollars. Sustainable bonds continue to fuel this expansion, with a cumulative value exceeding $4 trillion since 2018.
However, despite this progress in green bonds, net inflows for sustainable funds declined by 60% last year. This decline is a reflection of what some are calling the ‘greenlash’, a strong backlash to growing greenwashing concerns among market participators.
And let me be very clear here. Greenwashing is not just an abstract concept or a buzzword.
Greenwashing is the fossil fuel company rebranding itself as a champion of renewable energy, while continuing to invest billions in fossil fuels. Greenwashing is the beverage company launching a "green" product line, while continuing to use excessive plastic packaging.
Greenwashing is a betrayal of trust, an erosion of the credibility of the entire sustainable finance market, hindering its potential to drive meaningful change. If we do not fight green washing, green finance may peak before ‘peak oil’.
The G20 has a crucial role to play. Building on last year's support of the International Sustainability Standards Board's new global disclosure standards, we must focus on implementation. This will require us to avoid fragmentation and over-burdening the private sector, especially MSMEs and vulnerable countries, with a spaghetti bowl of standards. Capacity building and smart standards and interoperability efforts are needed.
UNCTAD is ready to support this crucial mission.
Thank you.
