Forum Climate Economics 11

The Financial Sector as Climate Protector? The Potential of Sustainable Finance

03 Mar 2022
Invitation only

The potential role of financial and capital markets in mitigating climate change has recently been of increasing concern to governmental and non-governmental bodies. Like Germany, many countries submitted national sustainable finance strategies. The European Union is about to adopt a clas­si­fi­ca­tion system for sustainable investments, the so-called EU taxonomy. These plans ascribe a central role to the financial sector in the transformation to a climate-neutral econo­my. But how do the financial market policy measures they contain relate to cli­mate policy measures already taken, such as the European emissions trading system? To what extent are these fields of action interlinked?

These questions are the subject of the Forum Climate Economics 11 "The Financial Sector as Climate Protector? The Potential of Sustainable Finance": What criteria must the company reporting in the financial and real economy fulfill in order to sufficiently consider climate and transition risks? Does the disclosure of sustainability information automatically lead to the intended reallocation of capital flows? Are there other barriers to the required investments in green technologies?