COP26 in Glasgow provided the framework for a side event entitled Sustainable Finance for Climate Mitigation. It was organized by the Dialogue on the Economics of Climate Change, represented by PIK, DIW Berlin and IfW, together with the German Federal Ministry of Education and Research (BMBF) in the German pavilion in early November:
The financial sector plays an important role in the transition towards a net-zero economy. Moderated by Prof. Dr. Karen Pittel (ifo Institute) this panel presented and discussed different policy options for the financial sector at national and international level. Karsten Löffler (Frankfurt School of Finance & Management / Green and Sustainable Finance Cluster Germany) opened with a keynote on the policy options and recommendations of the German Sustainable Finance Advisory Council. Subsequently, individual aspects of the recommendations were examined from a scientific perspective with short keynote speeches: First, reporting and transparency regulation to address the need for more standardized and forward-looking climate-related information. Second, policies that leverage this information to improve financial risk management. Third, which policies can set incentives to mobilize capital for climate-friendly investments (Dr. Kai Lessmann (PIK), Dr. Franziska Schütze (DIW Berlin), Prof. Dr. Frank Schiemann (University of Hamburg), Christa Clapp (CICERO)). The Side Event in the German Pavilion was held as an online event.