Measuring the Private Capital Response to Climate Change: a proposed dashboard

The briefing outlines a proposed dashboard to track the private capital response to climate change, structured around three factors: sentiment, integration, and flows. It identifies specific indicators for financial actors (such as banks and asset managers) and sectors (such as energy and transportation), while highlighting significant data gaps in measuring financial flows and the integration of climate considerations into decision-making. The framework aims to provide market participants with an overview of systemic progress and a means to gauge if capital reallocation is sufficient to meet climate goals.

• The proposed dashboard uses a logical framework based on three factors to measure the private capital response: 'sentiment' (signaling intent), 'integration' (climate-proofed decision-making), and 'flows' (financing climate solutions).
• The dashboard consists of five aggregate indicators: a Climate Sentiment Index, a Climate Integration Index, New System Flows, Total Stock of assets, and New Real Investment.
• Data availability varies significantly across the three factors: sentiment data is considered 'Good' for measuring both nature and speed, integration data is 'Moderate', and flows data is 'Poor' to 'Poor-to-moderate'.
• Measuring the 'speed' of the shift in private capital requires defining an end-point or reference for alignment, which is complicated by the lack of consensus on what a 'complete shift' looks like and the limitations of integrated assessment models (IAMs).
• There are critical data gaps in the banking sector regarding integration and financial flows, as well as a lack of annual data for real productive investments in sectors like zero-carbon buildings, sustainable agriculture, and climate-resilient water infrastructure.
• The framework suggests weighting sentiment actions to distinguish their proximity to actual capital shifts, using a 60:30:10 ratio for Direct actions, Indirect actions, and Awareness raising, respectively.

APA

Oliver, P., Clark, A., & Falconer, A. (2019). Measuring the Private Capital Response to Climate Change: a proposed dashboard. Climate Policy Initiative. https://www.climatepolicyinitiative.org/wp-content/uploads/2019/10/Measuring-the-Private-Capital-Response-to-Climate-Change-1.pdf

Chicago

Oliver, Padraig, Alex Clark, and Angela Falconer. Measuring the Private Capital Response to Climate Change: a proposed dashboard. Climate Policy Initiative, 2019. https://www.climatepolicyinitiative.org/wp-content/uploads/2019/10/Measuring-the-Private-Capital-Response-to-Climate-Change-1.pdf.

Wikipedia

{{cite report |last1=Oliver |first1=Padraig |last2=Clark |first2=Alex |last3=Falconer |first3=Angela |title=Measuring the Private Capital Response to Climate Change: a proposed dashboard |publisher=Climate Policy Initiative |date=October 2019 |url=https://www.climatepolicyinitiative.org/wp-content/uploads/2019/10/Measuring-the-Private-Capital-Response-to-Climate-Change-1.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{oliver2019measuring, author = {Oliver, Padraig and Clark, Alex and Falconer, Angela}, title = {{Measuring the Private Capital Response to Climate Change: a proposed dashboard}}, institution = {Climate Policy Initiative}, year = {2019}, month = oct, url = {https://www.climatepolicyinitiative.org/wp-content/uploads/2019/10/Measuring-the-Private-Capital-Response-to-Climate-Change-1.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }