Finance plays a critical role in meeting climate policy goals, as called for by Article 2.1c of the Paris Agreement to make finance flows consistent with a pathway towards lowering greenhouse gas emissions and climate-resilient development. To achieve this, policy makers require robust finance-related metrics and indicators to assess progress and the credibility thereoff, as well as to effectively incentvise investment and financing to reduce emissions and enhance resilience.
The OECD Research Collaborative is a network of governments, research organisations and finance providers, designed to serve as a platform for identifying research priorities, sharing information, linking together disparate research outputs, and communicating results to raise awareness. This stream of work addresses key technical and policy relevant issues relating to assessing the consistency of finance with climate policy goals, including:
23 November 2023 | OECD COP28 Virtual Pavilion
This session presented a framework to assess the consistency of mitigation scenarios with the Paris Agreement and discussed the scope, granularity, assumptions and uncertainities of scenarios used to inform climate ambition and action. The panel involved representatives from the climate science, climate policy and corporate communities, to enhance understanding on opportunities for policy makers as well as non-state and private actors to contribute to improved use of scenarios.
2 October 2023 | OECD Forum on Green Finance and Investment
This session discussed the consistency with the Paris Agreement of climate change mitigation scenarios currently used in finance, their scope and granularity, as well as opportunities for improved design and use of such scenarios. The panels involved experts across the scientific, research, climate and financial communities, with the aim to share best practices and experiences, thereby contributing to bridge remaining knowledge and coordination gaps.
22 February 2023 | OECD, Paris
An increasing number of financial sector initiatives are supporting the alignment of finance with the Paris Agreement and net-zero goals by encouraging action, designing alignment frameworks and assessment methodologies, developing metrics, and promoting improved reporting and data availability. The emergence and diversity of such initiatives implies a need for further co-ordination and an improved common understanding on the range of potential metrics and indicators. This OECD workshop, which gathered about 100 in-person participants and close to 300 virtual participants, contributed to this process. Discussions focused on if and how such metrics and indicators contribute to assessing progress in the financial sector towards climate mitigation policy goals. The event also focused on the issue of climate integrity and impacts in terms of GHG emission reductions in the real economy.