Financing 1.5°C: Five Trends to Watch in Climate-Aligned Finance in 2022

This briefing by RMI outlines five key trends expected to shape climate-aligned finance in 2022, focusing on the transition from high-level net-zero pledges to substantiated targets, credible transition plans, and real-world emissions reductions.

• Financial institutions are expected to move beyond general net-zero commitments in 2022 by providing more detail and ambition, specifically by setting interim targets for 2025 and 2030. There is a significant gap in portfolio coverage; for instance, signatories of the Net Zero Asset Managers initiative reported that only 35 percent of their total assets under management are covered by net-zero targets.
• The publication and assessment of ambitious transition plans for industrial companies and financial institutions will become essential for maintaining climate credibility and avoiding greenwashing. Stakeholders, including governments and shareholders, are expected to demand these details, potentially leading to more shareholder resolutions regarding the credibility of such plans.
• There is a shift toward holding financial institutions accountable for 'real economy' impacts rather than just paper-based portfolio alignment. While green investment products like green bonds, sustainability-linked loans, and green ETFs are expected to increase, the document notes that actions like divesting from a steelmaker may not actually result in the construction of less polluting plants.
• Investors require forward-looking, asset-level quantitative data and metrics to assess risks and opportunities, as historical data is no longer a reliable indicator in an unprecedented environment. Examples of tools for this include the SEC rulemaking, OS-Climate, and RMI's Utility Transition Hub for US regulated utilities.
• Climate-aligned finance agreements are expanding into high-emitting, hard-to-abate sectors. Following the 2019 Poseidon Principles for shipping (expanded to insurers in December 2021), a similar agreement for the global steel sector was expected in the first quarter of 2022, with further agreements planned for aluminum, cement and concrete, aviation, and real estate.

APA

RMI (2022). Financing 1.5°C: Five Trends to Watch in Climate-Aligned Finance in 2022. https://rmi.org/resources/five-trends-to-watch-in-climate-aligned-finance-in-2022/

Chicago

RMI. Financing 1.5°C: Five Trends to Watch in Climate-Aligned Finance in 2022. 2022. https://rmi.org/resources/five-trends-to-watch-in-climate-aligned-finance-in-2022/.

Wikipedia

{{cite report |author=RMI |title=Financing 1.5°C: Five Trends to Watch in Climate-Aligned Finance in 2022 |date=10 January 2022 |url=https://rmi.org/resources/five-trends-to-watch-in-climate-aligned-finance-in-2022/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{rmi2022financing, author = {{RMI}}, title = {{Financing 1.5°C: Five Trends to Watch in Climate-Aligned Finance in 2022}}, institution = {RMI}, year = {2022}, month = jan, url = {https://rmi.org/resources/five-trends-to-watch-in-climate-aligned-finance-in-2022/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }