UN calls for rethink of global financial system

A radical shift in the global financial system is needed according to a new United Nations report, ‘The coming financial climate – aligning the financial system with sustainable development’. The report considers the need to invest in adaptation to protect economies from the risks associated with climate change, and is scathing of the market response to date “In essence, market and policy failures have resulted in the structural mispricing of climate risks, exacerbated by short-termism, misaligned incentives and information asymmetries.”