Emerging markets require approximately US$2.5 trillion to achieve their ambitious climate adaptation and resilience goals. The financial sector is integral to tackling the mounting economic and social impacts of climate change. This white paper examines how financial sector regulators and industry associations can guide the sector toward sustainable finance systems that are more resilient and inclusive.

It identifies key building blocks of inclusive sustainable finance, spotlights emerging practices and presents recommendations for further actions needed to achieve inclusivity in sustainable finance.

Informed by SBFN members experience, the paper defines inclusive sustainable finance as practices that target vulnerable, marginalized, or excluded populations and economic sectors to (1) improve their access to financial capital for green transition, climate adaptation, and resilience, and (2) mitigate potential exclusionary effects resulting from sustainability, including climate-related policies and actions.

This white paper is the work of the SBFN Inclusive Sustainable Finance Task Force established in January 2024.