Workshop Research Collaborative Tracking Finance for Climate Action, October 2019
On 28 October 2019, the Research Collaborative workshop provided a platform to discuss tracking of finance and investments towards assessing their consistency with climate objectives, as called for by Article 2.1c of the Paris Climate Agreement. It gathered experts from research organisations, financial institutions and governments with the aim of providing institutional, country and international level perspectives on this topic. Each session addressed both the availability of data to track investments and financing, and the choice of methods and criteria to assess climate consistency. The sessions featured presentations by practitioners and researchers, followed by reflections from other stakeholders conducting related work, and a discussion.
This event was organised under the initiative “Financing Climate Futures: Rethinking Infrastructure”
Financing Climate Futures: Rethinking Infrastructure is a joint effort by the OECD, UN Environment and the World Bank Group, supported by the German Federal Ministry for the Environment, Nature Conservation and Nuclear Safety. It explores what public and private actors should do to support the radical transformation needed to align financial flows in infrastructure for low-emission, resilient development.
SESSION 1: Elements of tracking the climate consistency of finance and investments
This introductory session will seek to clarify the different parts that need to be tracked for a comprehensive coverage of investment and financing activities (e.g. investments in different types of assets, on primary and secondary financial markets). It will further provide an opportunity to discuss the different types of inputs and reference points that may be relevant to assess the climate consistency of such activities, including climate-related taxonomies, scenarios, and quantified policy goals.
- Nancy Saich, European Investment Bank
- Louise Kessler, Vivid Economics
- Which investment and financing activities should be tracked in priority to assess the consistency of finance with climate objectives?
- How can the multitude of climate-related scenarios and objectives be incorporated into an analysis of climate consistency?
SESSION 2: Institution-level tracking and assessments
This second session will provide a deep dive into investments and financing by financial institutions, in particular lending by banks. It will show ways to improve climate-related monitoring and disclosure for individual institutions or groups of institutions. It will highlight new initiatives and bottlenecks in terms of data to track investments and financing, methodologies to assess climate consistency, as well as the resulting impact on investment and lending practices.
- Nicolette Bartlett, Carbon Disclosure Project
- What are options for improving the climate-related tagging of investments and financing in corporate and financial reporting?
- How do measures of climate-related risks and alignment by investors and financiers relate to assessments of consistency with climate goals and impacts?
SESSION 3: Country-level tracking and assessments
The third session will be dedicated to presenting and discussing why and how countries track finance and investments towards assessing their consistency with climate objectives. Here again, the presentation of on-going efforts in this area will inform a discussion of best practices and gaps in terms of data and methodologies. It will also place such tracking and measurement efforts in the context of national climate policy discussions.
- Ian Cochran, Institute for Climate Economics
- Nathaniel Smith, United Kingdom
- How can investment data and consistency assessments at project- or institution-level be scaled up to inform country-level analyses?
- Conversely, how can national climate policy objectives be translated into assessment criteria at project, institution, or sector level?
SESSION 4: Towards international-level tracking and assessments
This final session will initiate a discussion about possible international-level indicators for measuring collective progress towards making investments and financing consistent with climate objectives. The aim is for participants to review current data availability and gaps, as well as discuss streams of work that are being initiated or could be considered to address these, building on institution- and country-level efforts discussed earlier during the day.
- Ivan Haščič, OECD
- Padraig OIiver, UNFCCC
- What are key data constraints that currently prevent expanding climate finance tracking to more comprehensively capture all finance flows and assess their climate consistency?
- What are possible international indicators for measuring the climate consistency of different types of investment and financing activities?