Sustainable Societies

Finance

Whether or not investments target environmental responsibility is directly related to the success of environmental initiatives in all nations. Presently, official development assistance is less than half the UN target of 0.7 % of Gross National Product (GNP). Because of speculation, investments once seen as effective in a country can soon be seen as unproductive, making available funds fluctuate widely in places already dealing with delicate economic situations. External debt and poverty in developing nations constrains the ability of the poor to pursue sustainable development. Today, more official development aid (ODA) for environmental protection and basic social services is now received, though it is still a small percentage of total ODA (not more than 8% to 12%). While environmental taxes and charges show promise for accelerating financial and environmental integration, the strong institutions required for success are lacking. A large majority of domestic subsidies, $600 to $800 billion a year worldwide, promote unsustainable development, particularly in developed countries. Recent public debates and environmental crises point out the need to integrate financial necessity with environmental considerations.