Shifting the financial system

Making finance flows consistent with the Paris Agreement

Tackling climate change will require a fundamental shift in the global financial system to support the transition to a low-carbon economy. Recent crises – such as the Covid-19 pandemic, the Russian invasion of Ukraine and resulting high inflation – have led to high interest rates and prices, exacerbating the need for further financing of the transition. Meanwhile, outdated international financial infrastructure means that the Global South desperately lacks access to much needed funds to address and mitigate climate change.

We seek to drive positive change to tackle these challenges by increasing the quality and quantity of financial flows, particularly to the Global South, that help facilitate a just transition in line with the Paris Agreement. Our work helps to scale up financing, bring greater integrity to carbon markets, address knowledge gaps and build capacity of those pushing for positive change, and work towards better regulation and transition planning for businesses and financial institutions across Europe. We are also considering ways to generate new sources of finance to further climate action, for example through windfall taxes to tackle oil & gas profiteering and reform of the World Bank, International Monetary Fund (IMF) and multilateral development banks.