The challenge to achieving the targets of the Paris Agreement and the United Nations Sustainable Development Goals (UN SDGs) is enormous – all economic sectors around the globe need to transform the way of creating welfare for society. This maxim applies to the financial sector and the real economy alike and results in the need for new rules, business models, innovation and incentives. Both public sector institutions and private actors play key roles in “making finance flows consistent with a pathway towards low greenhouse gas emissions and climate-resilient development” (Paris Agreement Article 2.1.c) and aligning financial flows with the UN SDGs.
In the recent years, new sustainable finance strategies and tools have been developed on an international, national and regional level such as the EU Action Plan on Financing Sustainable Growth. These national and regional policy instruments and regulations are often fragmented and lack a holistic and systematic approach to achieve the structural transformations of the national economic and financial system necessary. This is why Frankfurt School and GIZ have jointly developed the SF Navigator. The creation of sustainable financial systems is a complex multi-stakeholder and multi-level action task. This requires a well-structured comprehensive yet country-tailored and flexible approach to involve public and private stakeholders in a most efficient way.
Please find here the SF Navigator Report.