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In 2016, global energy-related carbon dioxide emissions were flat for a third straight year even as the global economy grew, according to the International Energy Agency.But there can be no room for complacency. The current pace of positive change is still well behind the curve and unless ambition is significantly raised, and raised soon, we may lock in a highly hazardous temperature rise of 3, 4 or more degrees Celsius this century.One fundamental area is reforming the global financial architecture so that more finance flows into sustainable investments. By some estimates, US$90 trillion-worth of investment should be directed into what one may term green investments by 2030, covering everything from promoting more renewable energy and energy efficiency to sustainable transportation.Currently, US$300 trillion of assets are held by banks, the capital markets and institutional investors. So we are faced with a problem of allocation, rather than outright scarcity.There are some promising developments. In all, the total number of policy and regulatory measures to build a more sustainable financial system has more than doubled in the past five years. The UN Environment, in a recent report, says actions taken by finance ministries, central banks and regulators to promote sustainable finance have risen to 217 and now exist in nearly 60 countries. These range from actions steering finance towards clean energy, assessments of climate risk for insurance companies and on to producing road maps that set out how to ‘green’ an entire financial system as China did last year.These are all promising signs of positive momentum, but the world’s financial architecture is still ill-equipped to deliver the necessary transformation. The national climate plans submitted by governments represent a real improvement on business as usual, but do not yet provide the signals needed to steer capital towards global climate action. So while it is true that investors are starting to measure the carbon footprint of portfolios and increase exposure to green assets, only a tiny minority has introduced comprehensive climate strategies.The financial system clearly needs to evolve further to price environmental risks, overcome short-termism and deliver greater transparency on climate performance. Making this happen, and take place with a sense of urgency, will require different players to put in place mutually reinforcing financial policies and regulations that support the Paris Agreement. If we can get it right, private capital will respond – and the trillions needed for transformation across countries North and South will flow. The G7 club of nations, working with, for example, the G20, have the human and political resources able to power up this change. It is time to deploy them. ■ABOUT THE AUTHOROn 18 May 2016, United Nations Secretary-General Ban Ki-moon appointed Patricia Espinosa of Mexico as Executive Secretary of the United Nations Framework Convention on Climate Change (UNFCCC). Ms Espinosa took office on 18 July 2016.Ambassador of Mexico to Germany since 2012 and from 2001 to 2002, Ms Espinosa was Minister of Foreign Affairs of Mexico from 2006 to 2012, bringing more than 30 years of experience at highest levels in international relations, specialized in climate change, global governance, sustainable development, gender equality and protection of human rights.As Mexico’s representative on multilateral bodies and international organizations in Vienna, Geneva and New York, Ms Espinosa has been engaged as leader in the global challenge to address climate change and its consequences, notably as Chair of the 16th Conference of the Parties to the UNFCCC leading to the adoption of the Cancun Agreements. she is a tireless supporter of multilateralism as a way to improve conditions for development in all regions of the world, understanding the inextricable link between the aims of the Paris Climate Agreement and the Sustainable Development Goals.Pictured: Patricia EspinosaINTRODUCTION 015