Making Finance Consistent with Climate Goals

This research paper by the World Resources Institute proposes a framework and toolkit to help governments and non-state actors operationalise Article 2.1c of the UNFCCC Paris Agreement, which aims to make finance flows consistent with low greenhouse gas emissions and climate-resilient development.

• Article 2.1c of the Paris Agreement establishes a collective goal to align all forms of finance—including public, private, domestic, and international—to support a transition to a climate-resilient world with low greenhouse gas emissions. This financial realignment is described as a necessary condition for achieving the Agreement's other two long-term goals: limiting global temperature increases to well below 2°C (ideally 1.5°C) and increasing climate adaptation capabilities.
• The paper introduces a three-part framework designed for governments and non-state actors to operationalise Article 2.1c. The framework focuses on three primary objectives: driving action to mobilise and shift finance, tracking progress against the goals of Article 2.1c, and increasing overall ambition.
• To shift finance, the research identifies four primary categories of tools available to governments: financial policies and regulations, fiscal policy levers, public finance, and information instruments.
• Urgent action is required to realign finance because emissions are currently on track to exceed the 1.5°C carbon budget by 2030. According to a 2018 IPCC report, reaching net-zero greenhouse gas emissions within 25 years to maintain a 1.5°C limit will necessitate a 'major reallocation of the investment portfolio'.
• The paper suggests next steps for implementation both within and beyond the UNFCCC. Within the UNFCCC, it recommends utilizing the Global Stocktake, nationally determined contributions (NDCs), and the enhanced transparency framework. Beyond the UNFCCC, it suggests engaging public finance institutions, investor and business groups, and the UN Secretary-General’s 2019 Climate Summit and the Climate Finance Leadership Initiative (CFLI).

APA

World Resources Institute (n.d.). Making Finance Consistent with Climate Goals. https://www.wri.org/research/making-finance-consistent-climate-goals

Chicago

World Resources Institute. Making Finance Consistent with Climate Goals. n.d. https://www.wri.org/research/making-finance-consistent-climate-goals.

Wikipedia

{{cite report |author=World Resources Institute |title=Making Finance Consistent with Climate Goals |url=https://www.wri.org/research/making-finance-consistent-climate-goals |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{worldresourcesinstitutendmaking, author = {{World Resources Institute}}, title = {{Making Finance Consistent with Climate Goals}}, institution = {World Resources Institute}, url = {https://www.wri.org/research/making-finance-consistent-climate-goals}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }