Sustainable Finance is the buzz word in cop28. Trillions are being pledged to support the transition to “hopefully” a low-carbon economy and climate action. However, pledges are not enough if they are not matched by the ability to access capital for the projects and communities that can make a difference on the ground.
I couldn’t keep count with the number of sessions where financing and access to capital were part of the discussion, but most of these sessions focused on what’s required from the “demand” side that needs to be able to “report” in a way that is aligned with the expectations and requirements of the financing entities.
On the other hand, more discussions are still needed on the financial “supply” side which is expected to be more flexible and inclusive in their criteria and processes, and to recognize that there is no one-size-fits-all solution for sustainable development. This means establishing shared grounds on intellectual, analytical and moral dimensions.
Finance is expected to be in service of people and planet not the other way around.
Moreover, it is important to remember that capital is not just financial (money), but there are other forms of capital that are essential for a regenerative development, such as nature, social, knowledge, and culture capitals. These forms of capital are often overlooked or undervalued by the conventional financial system, but they are crucial for creating resilience , innovation, and wellbeing in the face of climate change and other glocal challenges.
We need a systemic change to achieve a sensible and meaningful impact in local communities and bioregions without being dictated by preconceived narrative from the conventional financial system.
Therefore, I believe that we need to change the narrative around sustainable financing, and to embrace a more holistic and diverse approach that can foster collaboration and co-creation among different actors and sectors. Only then can we hope to achieve the ambitious goals that we have set for ourselves and for future generations.
Let’s change the narrative!
First published in LinkedIn on December 4, 2023
Regeneology LTD. 