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The financial sector will need to play a leading role in scaling up green initiatives, de-risking projects for investors and optimizing funding costs.To that end, the banking sector, including central banks, recently established the Principles for Responsible Banking and the Network for Greening the Financial System. Changing banks' energy-financing models, or developing sustainability-linked loans and green bonds, will simply not be enough to facilitate such "transition journeys".Currently, there are no "transition principles" through which issuers can factor the Green and Social Bond Principles into their financing needs.The second big transition-financing opportunity is in blended finance, or collaborative schemes that raise private capital for public goods.From the outset, these initiatives must bring together the stakeholders that set the standards (in particular governments, NGOs and regulators) and those that deliver ecological and social projects locally (including businesses, farming communities, investors and banks).By adopting innovative new approaches, the financial sector can undergo a positive green transition of its own -- and help others with theirs.
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