“Making financial flows consistent with climate-resilient development”: The role of international financial institutions and standard setters

The briefing argues that the global financial architecture requires far-reaching reform to make financial flows consistent with climate-resilient development, as current international institutions are failing to effectively redirect finance away from harmful activities.

• International financial institutions, particularly those dominated by Global North countries, have historically avoided climate action by claiming such work falls outside their "purely economic" mandates, resulting in a failure to effectively regulate or redirect financial flows toward a just transition.
• To achieve the goals of Article 2.1c of the Paris Agreement, global processes such as COP30, the Financing for Development conference, and the South Africa G20 should shift focus away from requiring developing countries to 'attract' investment and instead prioritize how developed countries can provide trillions in annual public finance through debt cancellation, tax justice, and the removal of public finance for fossil fuels.

APA

Race, M. (2025). “Making financial flows consistent with climate-resilient development”: The role of international financial institutions and standard setters. Recourse. https://re-course.org/newsupdates/report-article-2-1c/

Chicago

Race, Madeleine. “Making financial flows consistent with climate-resilient development”: The role of international financial institutions and standard setters. Recourse, 2025. https://re-course.org/newsupdates/report-article-2-1c/.

Wikipedia

{{cite report |last1=Race |first1=Madeleine |title=“Making financial flows consistent with climate-resilient development”: The role of international financial institutions and standard setters |publisher=Recourse |date=11 June 2025 |url=https://re-course.org/newsupdates/report-article-2-1c/ |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{race2025making, author = {Race, Madeleine}, title = {{“Making financial flows consistent with climate-resilient development”: The role of international financial institutions and standard setters}}, institution = {Recourse}, year = {2025}, month = jun, url = {https://re-course.org/newsupdates/report-article-2-1c/}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }