Panagiotis Delimatsis and Leonie Reins (eds), Encyclopedia on Trade and Environmental Law, Edward Elgar, 2021 (forthcoming)
13 Pages Posted: 22 Mar 2021
Date Written: February 9, 2021
Sustainable finance, as a distinct category of finance, entails the introduction of environmental, social and governance (ESG) considerations into financial decision-making. Previous work at the international level such as the UN Principles for Responsible Investment and the Global Compact earlier have linked economic activity to sustainable development. The G20 and manifold organizations, backed by the UN but also autonomously, currently elaborate principles, prepare recommendations and generally align their forces with a view to mobilizing private and public capital for 'green' purposes. Higher returns but also risk management are good reasons for the financial sector to participate in such efforts. The current WTO framework, and more specifically the General Agreement on Trade in Services (GATS), could offer some avenues for advancing global cooperation in the area of sustainable finance and attenuate potential frictions due to regulatory fragmentation.
Keywords: Sustainable finance, responsible investment, environmental, social and governance (ESG), General Agreement on Trade in Services (GATS)
JEL Classification: B27, F02, F13, F18, F21, F38, F55, F65, G15, G18, G20, G30, O16, Q02
Suggested Citation: Suggested Citation