Increase Coordination between Investment and Environmental Policies – Dushni Weerakoon
21 October 2021
Dushni Weerakoon, Executive Director, IPS speaking at a panel discussion on ‘Sourcing Alternatives: Leveraging Green Finance for Development’ noted that at the level of national planning, increased coordination between investment and environmental policies is needed for an integrated approach to sustainable, long-term growth. The objective of such an approach is to establish an incentive structure for increased allocation of funds towards setting up or adopting environmentally sustainable projects. Once funds are freed from conventional industries and are channeled into the green and environment-friendly sectors, other resources including land and labour may also follow. This eventually leads to an optimal allocation of resources that support sustainable growth in the long run.
For such a framework to be effective, asymmetric information gaps need to be addressed to identify what conforms as a green project, including an appropriate set of standards. Mandatory reporting on sustainability disclosures by companies on their environment, social and governance (ESG)-related risks, and corporate social responsibilities, etc. will provide the information for investors looking to invest in green and environment-friendly activities.
The panel was the 3rd Session of the Colombo Development Dialogues on Green Development organised by the United Nations Development Programme. Watch the video HERE.