Our topics

Sustainable finance

Supporting climate compatible policies and investment decision making in order to avoid stranded assets and catalyse finance to bring about sustainable, rapid, and far-reaching transitions towards deep decarbonisation.

Climate compatible finance

Overview

Driving deep decarbonisation with climate resilient infrastructure in line with the Paris Agreement will require massive investment in climate solutions. Current investments flows are however not consistent with either global climate or sustainable development objectives. Debates around sustainable finance today will play a key role in shifting financial flows that will have important implications for emissions patterns and progress  for decades to come. Urgent action is needed to foster enabling environments for Paris aligned investments, phase-out investments in high emissions activities and thereby avoiding further stranded assets. A deeper understanding of transition finance needs at the country and sector level is an important element to facilitate climate aligned finance; as well as the implementation of effective finance and de-risking mechanisms and policy change to mobilise sufficient transitional investment from private and public sources.

Our interdisciplinary team combines global insights with in-country development cooperation and technical expertise to support policy makers, investors, business, and civil society to:

  • Develop criteria and tools for Paris aligned investment decision making
  • Support reforms and development and implementation of climate strategies in public and development finance organisations
  • Track and analyse finance sector climate initiatives and their impact
  • Analyse  climate risk, especially transition  and high carbon lock-in risk
  • Analyse national and sectoral investment and transition finance needs
  • Analyse  effective finance instruments and enabling policies

 

Climate Audit of German and EU Foreign Diplomacy

In the wake of the COVID-19 pandemic and despite rhetoric of building back better, the world is currently on track towards 2.7°C of...

Operationalization Framework on Aligning with the Paris Agreement

In 2017, the International Development Finance Club (IDFC) together with the group of Multilateral Development Banks (MDBs) made a...

Strengthen national climate policy implementation: Comparative empirical learning & creating linkage to climate finance

As part of implementing nationally determined contributions (NDCs), governments face the challenge of supporting national climate...

Deep Decarbonisation in Latin America

The project is funded by the International Climate Initiative (IKI) of the German government and implemented by SouthSouthNorth (lead)...

Landscape of Climate Finance: Promoting debate on climate finance flows in Central Europe

The transition to a low-carbon economy requires an unprecedented redirection of financial flows towards sustainable investments. In...

Paris compatible investment criteria

NewClimate Institute, together with Germanwatch and WRI, provides inputs to development banks in supporting the implementation of the...

Climate Investment in Latin America
Publication date 24 Nov 2021

This report, the first in a series of three, focuses on the policy landscape needed to enable a transition to net zero emissions...

Paris alignment of gas?
Publication date 20 Oct 2021

Financial institutions' current investments in gas reflect an underestimation of climate risks, including the extent to which gas value...

Transforming the finance sector with technical assistance
Publication date 24 Jun 2021

We assessed whether and to what extent the provision of technical assistance can help to transform the finance sector, using the...

Aligning Financial Intermediary Investments with the Paris Agreement
Publication date 23 Jun 2021

In order for development finance institutions, including multilateral development banks and bilateral, regional and national...

Operationalization Framework on Aligning with the Paris Agreement
Publication date 04 Jun 2021

In 2017, the International Development Finance Club (IDFC) together with the group of Multilateral Development Banks (MDBs) made a...

Climate, COVID-19, and the Developing Country Debt Crisis
Publication date 01 Apr 2021

The triple COVID-19, economic, and climate crisis poses a growing challenge to debt sustainability and financing for climate action...

Renovation in Poland
Publication date 06 Jan 2021

In the coming years, Poland will gain access to unprecedented funds for thermal modernization of buildings. Limited monitoring of...

Unpacking the finance sector’s climate related investment commitments
Publication date 22 Sep 2020

Financial institution’s climate-related investment targets have rapidly grown in recent years. In this report, we provide insights into...

Aligning transport investments with the Paris Agreement
Publication date 17 Sep 2020

As the key European public finance institution, including in the EU’s COVID-19 response measures, the EIB can and should play a...

MDBs Pledged to Align Financial Flows with the Paris Agreement. They’re Not There Yet
Publication date 03 Nov 2021

Image by Milos Golubovic via flickr (CC BY-NC-ND 2.0) Two years after the 2015 Paris Agreement, the world’s multilateral development...

Gas investment is not the solution to the current energy crisis
Publication date 21 Oct 2021

Much of the world currently finds itself in the midst of an energy crisis tied to jumps in the price of gas. Expanded investments in...

The financial sector has a critical role to play in enabling global deep decarbonisation
Publication date 26 Jul 2021

To limit global warming to well under two degrees, the global economy needs to undergo system-wide changes. Finance has a critical role...

Three things development finance institutions can do to ensure Paris alignment of intermediated finance
Publication date 30 Mar 2021

Development banks not only provide finance directly to specific projects, they also channel funds to financial intermediaries, for...

Multilateral Development Banks Have Made Progress Towards Paris Alignment, but Still Need to Fill in Critical Details
Publication date 19 Mar 2020

The Paris Agreement sets out the ambitious task of aligning all financial flows with its goals to avoid the worst impacts of warming...

Moving beyond climate finance towards Paris-aligned investing – How do MDBs climate finance eligibility criteria compare to Paris-aligned investing criteria?
Publication date 07 Dec 2018

Under the Copenhagen Accord, developed country governments agreed to mobilize 100 billion USD of climate finance each year as of 2020...

Landscape of climate finance: From supporting recovery globally to recent advances in the CEE region
Venue Online
Date 27 Oct 2020

Aki Kachi presented on "Current trends in green recovery measures" at the "Landscape of climate finance: From supporting recovery...

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