The financing landscape has changed dramatically since the adoption of the Addis Ababa Action Agenda. Digital technology has transformed key aspects of financial systems. There has also been rapidly growing interest in sustainable investing, in part due to greater awareness of the impact of climate and other non-economic risks on financial returns.
Yet, just as we begin the decade of action, global challenges have multiplied. The economic and financial shocks associated with COVID-19—such as disruptions to industrial production, falling commodity prices, financial market volatility, and rising insecurity—are derailing the already tepid economic growth andcompounding heightened risks from other factors. These include the retreat from multilateralism, a discontent and distrust of globalization, heightened risk of debt distress, and more frequent and severe climate shocks. Together, these make sustainable finance more difficult—and further undermine the ability toachieve the Sustainable Development Goals (SDGs) by 2030.Published 9-4-2020