However, since its foundation, the Hong Kong Special Administrative Region of the People's Republic of China (HKSAR), Indonesia, Japan, Malaysia, New Zealand, Norway, Senegal, Singapore, Switzerland and the United Kingdom have also joined IPSF. The founding members of the IPSF are obviously the European Union, but also the competent authorities of Argentina, Canada, Chile, China, India, Kenya and Morocco. The platform is a multi-stakeholder forum for dialogue between policymakers tasked with developing regulatory measures for sustainable finance to help investors identify and seize sustainable investment opportunities that truly contribute to climate and environmental goals. The International Platform on Sustainable Finance (IPSF) was launched on 18 October 2019 by the European Union. International Platform on Sustainable Finance (IPSF) This means working together to ensure the potential of financial markets, and it is in this context that the International Platform on Sustainable Finance has been created. Therefore, this requires a high degree of coherence between the different capital market frameworks and tools that are essential for investors to identify and seize green investment opportunities. Indeed, to mobilize international investors, it is necessary to promote integrated markets for environmentally sustainable finance at the global level.The UNFCCC and Paris Agreement's collective goal of mobilizing USD 100 billion per year by 2020 in the context of meaningful mitigation action and transparency on implementation fell short in 2018. Because financial markets are global, they offer a great opportunity, but this potential is largely untapped. Public finance will continue to play a key role, but a significant share of the funding will have to come from the private sector. To reach the target of a maximum temperature increase of 2 ☌, we need billions of green investments each year in key sectors of the global economy. International Initiative īy signing the Paris Agreement, more than 190 countries have committed to fighting climate change and reducing environmental degradation. Sustainable finance extends its domain to the three components of ESG it is therefore the broadest term, covering all financing activities that contribute to sustainable development. Lastly, sustainable finance includes Environmental, Social and Corporate Governance (ESG) factors in its scope. Then, green finance has a broader scope because it also covers other environmental issues such as biodiversity protection. First, climate finance is a subset of environmental finance, it mainly refers to funds which are addressing climate change adaptation and mitigation. As a matter of fact, the United Nations Environment Programme (UNEP) defines three concepts that are different but often used as synonyms, namely, climate, green and sustainable finance. The terminology is essential to understand the different concepts around sustainable finance and the differences. Sustainable finance has become a key cornerstone for the achievement of these goals. SDGs aimed at tackling current global challenges, including protecting the planet. This commitment involves 193 member states and comprises 17 goals and 169 targets. In 2015, the United Nations adopted the 2030 Agenda to steer the transition towards a sustainable and inclusive economy. The long-standing concept was promoted with the adoption of the Paris Climate Agreement, which stipulates that parties must make "finance flows consistent with a pathway towards low greenhouse gas emissions and climate-resilient development." In addition, sustainable finance had already a key role to play in the European Green Deal and in other EU International agreements, but since the COVID-19 pandemic its role is even more important. It allows the financial system to connect with the economy and its populations by financing its agents while maintaining a growth objective. Sustainable finance is the set of financial regulations, standards, norms and products that pursue an environmental objective. Financial regulations, standards, norms and products that pursue an environmental objective.
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