Mainstreaming Climate Change into the financial sector: rationale and entry points

18 May 2015 - Special issues - By : Ian COCHRAN, Phd / Michel Colombier (IDDRI)

CIGI POLICY BRIEF No. 5 • June 2015 Fixing Climate Governance Series

by Sáni Zou, Romain Morel, Thomas Spencer, Ian Cochran and Michel Colombier

Mainstreaming Climate Change into the financial sector: rationale and entry points

  • Today, the financial sector is exposed to the physical risks associated with climate change and the impact of climate policies. Securing global financial and economic stability and scaling up low-carbon, climate-resilient investments are not conflicting, but rather mutually reinforcing, objectives.
  • Although crucial, classic climate policies — such as carbon pricing, emission standards and technology objectives — do not appear sufficient to address the challenges from climate change that the financial sector is facing. Policies affecting the demand side and supply side of finance, as well as instruments matching supply and demand, need to be aligned with climate objectives to efficiently shift investments toward a low-carbon, climate-resilient economy.
  • The financial sector and its governance bodies have an interest in integrating climate change issues into their risk and stability assessment frameworks, but seemingly differing mandates and the lack of institutional and intellectual links are hindering a timely and well-informed discussion.
  • Once the link between climate change and the mandates of international financial sector governance and regulatory institutions is understood, the existing tool kits and processes of these institutions — common standards, principles and guidelines with various levels of legal force, country surveillance and technical assistance — present entry points to mainstream climate-related risks and opportunities into their core operations.

To learn more, read our more comprehensive working papers on Mainstreaming Climate Change in the Financial Sector and its Governance:Part I: A Necessary and Timely Evolution

Mainstreaming Climate Change into the financial sector: rationale and entry points Download
To learn more
  • 05/12/2023 Foreword of the week
    Green industry: the game is kicking off

    Faced with international competition exacerbated by the US Inflation Reduction Act, Team Europe (and longtime team member, France) is preparing its response. The team’s tactics tackle two challenges: greening existing industrial sectors such as steel or cement, and industrialising the production of green goods, particularly those cleantechs that will make the transition a reality, such as heat pumps or electrolysers. To meet the first challenge, the French government has put 5 to 10 billion euros of public money on the table to decarbonise the most polluting production sites, in return for private investment. But has the extent of the industrial investment needs been properly assessed?

  • 05/11/2023
    Investments to decarbonise heavy industry in France: what, how much and when?

    Industry: relocation and decarbonisation at the heart of the debate. The recent succession of crises (health, energy, geopolitical) and increased international competition have prompted France to look for ways to strengthen its industrial and energy sovereignty. It faces this challenge in addition to the challenge of decarbonising its industry. In this context, France and Europe are developing industrial policies with two objectives – relocation and decarbonisation – and with new tools such as the France 2030 plan and the Net Zero Industry Act at the European level. These policies target both ‘historical’ industries, such as steel and cement, and new clean technologies, from solar to batteries.

  • 05/10/2023 Blog post
    The Net-Zero Industry Act: Designing Europe’s launchpad for a cleantech investment plan

    As the world enters a new era of cleantech competition, policymakers must confront two key policy questions – regulation and investment. The Net Zero Industry Act is Europe’s response to the former. Yet key concerns around permitting, sectoral targets and the scope of the Act will need to be addressed if it is to be effective, argue Thomas Pellerin-Carlin and Ciarán Humphreys in this blog post.

See all publications
Press contact Amélie FRITZ Head of Communication and press relations Email
Subscribe to our mailing list :
I register !
Subscribe to our newsletter
Once a week, receive all the information on climate economics
I register !