Webinar – Sustainability Disclosure Updates from Emerging Markets – Wednesday, 13 July 2022

Collective Experiences – Proposed approaches to addressing market failures via sustainable finance frameworks

The activities SBN members can undertake to address the market failures associated with credit to the agriculture and SME sectors are unlikely to be integrated within sustainable finance frameworks.

However, SBN members can integrate sustainability considerations and amplify their impact via the following types of activities:

Refinancing facilities – as with the ‘expand finance’ section, preferential finance schemes should support investments in sustainability and climate-friendly technologies;
Risk-sharing systems – climate risk insurance could
be bundled with credit guarantees and risk-sharing mechanisms, and environmental and social risk could be fully integrated into these activities; and
Finance infrastructure development – environment and social risk could be part of the risk information collected on borrowers and disseminated through credit registries to help create momentum within markets for adopting sustainable and climate smart practices.