Towards resilient economies: from progress to transformation
How many more shocks will it take before the way we finance and shape our economies catches up with the challenges we face?
Climate change is already reshaping economic realities, as extreme heat, droughts, floods and wildfires affect communities, infrastructure and economic activity across regions. At the same time, continued dependence on fossil fuels leaves economies exposed to volatile energy prices and geopolitical tensions. The urgency is clear: what we finance today must reduce, rather than deepen, existing vulnerabilities as climate- and nature-related risks intensify. Aligning financial flows with low-carbon, resilient and sustainable development is a priority that can no longer be postponed.
But how do we know where progress is being made, where gaps remain and what the effective policy levers are? After almost two years of work with Frankfurt School of Finance and Management (FS) and local partners in G20 economies, we have launched the Sustainable Finance Progress (SFP) Framework. Tested in Brazil, France, Germany, Indonesia and South Africa, the SFP provides a unique integrated approach that brings together what existing approaches often track separately: commitments, policy implementation and financial outcomes across the main levers shaping sustainable finance. Alongside this, our new work with the World Resources Institute (WRI) on transformational finance explores how public development banks can go beyond individual projects to address systemic barriers and create the conditions for wider change.
Ministries of Finance are among the key actors with the tools and levers to make this transformation happen. This is why we have also focused our efforts on co-creating spaces for them to exchange experiences and learn directly from one another. Earlier this month, we joined forces with key partners to support the 2nd Inter-regional Exchange of Ministries of Finance for Climate, which brought together representatives from Africa and Latin America and the Caribbean in Salvador de Bahia, Brazil. Over three days, they shared practical experiences on managing climate-related fiscal risks, strengthening fiscal and financial resilience, and addressing governance challenges for implementation. There is no single blueprint, but better evidence, more effective use of financial tools and stronger learning across countries are essential elements to accelerating the transition towards more resilient and sustainable economies.
