UN Launches 10 Principles to Close Asia Pacific Sustainable Finance Gap

October 7, 2023

GS Paper III Environment and Ecology

Context:

The UN ESCAP report proposes 10 principles to boost financing for critical Sustainable Development Goals, focusing on climate action for the Asia Pacific region.

2023 Edition of ESCAP’s

Report Titled: Sustainable Finance: Bridging the Gap in Asia Pacific.
Aim: To guide policymakers, regulators, and private finance in effectively mobilizing and deploying funds.

About UN ESCAP

The Economic and Social Commission for Asia and the Pacific (ESCAP) intergovernmental platform in the Asia Pacific region.
ESCAP is one of the five regional commissions of the United Nations.
Members: 53 member States and 9 associate members including India.

What are the Key Takeaways from the United Nations ESCAP Report on Sustainable Finance in Asia Pacific?

Principles for Mobilizing Climate Finance: The report presents 10 principles to mobilize and deploy financing for UN-mandated Sustainable Development Goals, particularly focusing on climate action.
Key Principles for Action
- Developing new climate finance partnerships
- Developing effective NDC financing strategies
- Developing policy coherence and capacities across key government ministries
- Taking decisive regulatory action to shift capital in the Asia Pacific towards the Net Zero transition
- Driving investment in the capacities of financial personnel
- Driving investment in much-needed sectoral and project-based financial data is undertaken
- Committing to Net Zero pledges for 2050 with credible transition pathways and including 2030 goals
- Increasing local-currency financing of energy transition projects as well as green technologies and other net-zero investments
- Expanding and accelerating concessional financing and risk-sharing by multilateral development banks, bilateral development financial institutions, and public development banks
- Increasing investment of time and effort with partners in project preparation
Financial Needs and Reporting
- Only 17 of the 51 Asia-Pacific countries party to the UN Framework Convention on Climate Change have assessed and reported their financial needs to meet their Nationally Determined Contributions.
Economic Losses: Average economic losses in the region from disaster-related and other natural hazards are expected to rise to $1.1 trillion in a moderate climate-change scenario and $1.4 trillion in a worst-case scenario.