Shifting the financial system

Supporting finance flows and corporate action consistent with the Paris Agreement

Tackling climate change requires a fundamental shift in the global financial system and corporate operations. Recent crises, high inflation, and interest rates have led to a cost-of-living crisis, highlighting the need for financing the transition and new business models. Meanwhile, outdated international financial infrastructure makes it difficult for the Global South to access essential funds to address and mitigate climate change. Despite these challenges, companies are beginning to see the benefits of aligning with the Paris Agreement and creating solid plans to reach their net-zero commitments.

We believe that financial institutions, companies, and governments all play a role in ensuring a just transition to a net-zero economy. Together with our partners, we focus on three main areas:

1. Public finance: Helping ensure that public finance supports the EU’s transition to a fair, net-zero economy, and building strong international climate finance. This includes looking into new funding sources, such as solidarity levies, to boost climate action.
2. Private finance: Encouraging corporations and financial institutions to manage climate risks, create strategic transition plans, and increase financing for the transition.
3. Public policy: Highlighting the importance of central banks and financial supervisors in managing the broader economic risks posed by climate change.