Ten years ago, the Paris Agreement marked the beginning of a period of increased climate ambition by public authorities and the private sector. More specifically, Article 2.1c of the agreement contributed to placing the financial sector at the heart of the climate transition, by setting a goal of “making finance flows consistent with a pathway towards low greenhouse gas emissions and climate-resilient development”.
In this context, financial institutions, supported by a range of metric frameworks and methodological guidance, have initially placed a strong emphasis on designing robust decarbonisation targets. Available evidence on the continued overall low degree of climate alignment in finance, limited real-economy impacts, and concerns of greenwashing, point out to the need for:
- A robust set of complementary metrics to provide a more complete and accurate view on progress towards transition plans, alignment, and transition-related risk management.
- Addressing the specific characteristics of various types of financial institutions and different asset classes within their portfolios.
To foster knowledge sharing and dialogue on these aspects, this workshop will bring together experts and practitioners within the following communities: climate policy makers, financial regulators and supervisors, investors and financial institutions, researchers, as well as providers of data and assessment methodologies.
The event is hosted by the OECD in the context of a programme of work on assessing the alignment of finance with climate goals, based on funding provided by a range of OECD member countries. It is part of a series of workshops on this topic, with the most recent ones in 2024 on assessing the climate resilience of finance, and in 2023 on assessing the ambition of climate targets, having each attracted a combination of around 100 in-person participants and over 300 virtual attendees.
The OECD is pleased to partner with Climate Arc in the preparation of session 1.
