On 6 October 2023, Diplomatic Courier, a global affairs media network, published an opinion article by Suneetha Subramanian (Research Fellow, UNU-IAS) calling for a "nested” financial approach to advance the global climate, biodiversity, and well-being agendas.
The piece discusses how financing at different levels of planning (intergovernmental, national, sub-national and local) can be designed to meet the needs, priorities, and challenges relating to specific contexts, and how it allows for the full and effective participation of various stakeholders.
Scale-appropriate financing is not new. What is noteworthy is that such finance tends to be less onerous and more accessible to actors who ultimately need to make decisions related to the management and use of landscapes and seascapes. Identifying the consequences of different decisions (through environmental and social auditing methods) enables these actors to make more informed choices, satisfying the “fundability” requirements of financial institutions. Although this is well understood, mainstream discourses on nested finance are yet to gain currency. While it is encouraging that this year’s 7th Global Environment Facility (GEF) Assembly highlighted the need for inclusive finance, central banks and governments must make conscious policy decisions to guide financial institutions towards creating decentralized financing policies.
The full article is available on the Diplomatic Courier website.