Breaking the Code - RMI

This report examines the evolving role of private financial institutions in the low-carbon transition, analyzing the regulatory, policy, and market pressures driving the alignment of portfolios with the Paris Agreement and the structural barriers that limit the sector's influence on the real economy.

• Private financial institutions, including asset owners and lenders managing tens of trillions in assets, are transitioning from merely considering climate risks to actively aligning their portfolios with the Paris Agreement.
• Global policymakers and regulators are implementing tools to direct capital toward sustainable activities and ensure climate risks are priced into markets, while supervisors are increasing their oversight of insurers and banks.
• The financial sector faces a complex landscape where structural barriers and legal obligations can restrict its capacity to impact the real economy, necessitating a clear understanding of which initiatives effectively overcome these hurdles.

APA

RMI (2020). Breaking the Code - RMI. https://rmi.org/resources/breaking-the-code/

Chicago

RMI. Breaking the Code - RMI. 2020. https://rmi.org/resources/breaking-the-code/.

Wikipedia

{{cite report |author=RMI |title=Breaking the Code - RMI |date=28 July 2020 |url=https://rmi.org/resources/breaking-the-code/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{rmi2020breaking, author = {{RMI}}, title = {{Breaking the Code - RMI}}, institution = {RMI}, year = {2020}, month = jul, url = {https://rmi.org/resources/breaking-the-code/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }