Using Innovative Policy and Regulatory Approaches to Incentivize the Alignment of Investment Strategies with Sustainability Considerations

The aim of this paper is to provide input on how governments can incentivize the investment industry to rapidly expand and scale-up investment in sustainable and green growth opportunities, as part of their broader agendas on transitioning to climate-resilient and resource-efficient economies.

Through financial market reform, policy-makers and regulators have the opportunity to create certain domestic enabling conditions that can incentivize private sector participation in providing the capital required to finance such a transition. This has particular relevance to many countries in Asia, whereby financial market reform is under way and policy-makers are actively seeking supporting tools and mechanisms