To ensure capital moves to green at scale, policymakers can simplify decision-making and streamline investment processes.
Policy 97. Establish science-based green standards or taxonomies to provide clarity on what a sustainable investment is and identify green investment opportunities. Including transition standards provides guidance on how to decarbonise high-carbon activities and enables financing of these activities’ transition. Aligning with international taxonomies and standards will also enable international private finance flows.
Policy 33. Minimise potential bottlenecks to investment by fast-tracking permits for green projects, such as renewable energy deployment, and developing regular and replicable auctions.
Policy 101. Green bond segments and fast tracking makes investing in and issuing sustainable instruments easier. This can help overcome inertia.
Policy 59. Carbon credit trade threatens the transition if used to offset avoidable emissions. Market reform can identify qualified offset purchasers and ensure credits are only reserved for residual emissions. Reform can also focus on preserving high-carbon stocks. This will facilitate growth of legitimate carbon credits to fund crucial conservation.
Policy 14. Kickstart change with a sovereign green bond programme. Sovereign green, social, sustainability, and sustainability-linked bond (GSS+) issuance provides a clear demonstration to market of the pricing and visibility benefits of green bonds, acting as a guide for potential issuers. It draws international investors into the local market. It also enables funding of key government expenditures and encourages government departments to grow their pipeline of eligible expenditures.