Aligning finance with climate policy goals is crucial for achieving net-zero greenhouse gas emissions and resilience to climate change, as called for by Article 2.1c of the Paris Agreement. Evidence-based policymaking and investment decisions towards such alignment need to be informed by robust assessments. To support such efforts, this paper summarises the inaugural edition of the OECD Review on Aligning Finance with Climate Goals, bringing together best available evidence on three core questions: 1) How is climate alignment of finance assessed? 2) What do we know about current finance flows and stocks? 3) What evidence exists on the role of financial sector policies and actions? The paper identifies actions policymakers and financial sector stakeholders can take to improve the evidence base and better align finance with climate goals. It further sets out good practices to prevent greenwashing and inaccurate claims of climate alignment.
