Financing the Common Good: State Capabilities, Sustainable Finance and the Real Economy

About the session

This panel examines how financial systems can be reoriented to serve the common good by focusing on the relationship between sustainable finance and the real economy. While the growing prominence of sustainable finance reflects a shift toward long-term value creation, its impact on productive investment and structural transformation remains uneven and often limited.

The discussion considers how the structure of financial decision-making—across institutions, incentives, and governance frameworks—shapes how risks are assessed, how opportunities are defined, and how capital is allocated. These dynamics are critical in determining whether financial systems can effectively support long-term, mission-oriented objectives.

Building on this, the panel explores how states can strengthen their institutional capacities to actively shape financial markets. It focuses on the role of public policy, regulation, and public financial institutions in directing capital toward productive and sustainable outcomes. Particular attention is given to the capabilities required to design and implement mission-oriented financial strategies, moving beyond alignment in principle toward effective execution in practice.

Key Questions

• How can the state more effectively shape financial systems to support mission-oriented and public interest goals?
• Why does sustainable finance often struggle to translate into measurable outcomes in the real economy?
• How do institutional structures and incentives influence financial decision-making and investment horizons?
• What specific policy tools and institutional capabilities are required to direct financial flows toward public value?
• How can public financial institutions be mobilized as instruments of structural transformation and long-term investment?

The panel discussion will feature international policy makers and representatives from multilateral institutions.

The event will be followed by a networking Reception (from 8:30 PM).