How citizen-based financing can drive sustainable development

As the backlash against ambitious action on climate, nature and sustainable development more broadly gathers pace, major parts of the financial community are retreating from their commitments and past actions, including major global banks exiting high-profile, high-commitment coalitions. This retreat, most vividly on view in the United States but emerging across Europe and elsewhere as well, raises major questions about the future role of the financial community in channeling money away from destructive investments and towards those that support a just transition to a low-carbon, nature-positive future.

The shift away from sustainable investing has been driven by short-term political, institutional and personal interests rather than a serious assessment of future risks and the long-term financial returns. This is all the clearer as the world moves beyond the 1.5°C-degree temperature rise above pre-industrial levels, the target agreed in the Paris Climate Accords in 2015, and is almost certain to head north of 2 degrees within the lifespan of a newly purchased car.