Making Finance Consistent with Climate Goals

The document argues that aligning all public and private finance is a necessary condition for meeting the temperature and adaptation goals of the Paris Agreement. It introduces a framework for governments and non-state actors to drive action, track progress, and increase ambition regarding Article 2.1c. To support this, the paper identifies four primary toolsets for governments: financial policies and regulations, fiscal policy levers, public finance, and information instruments. The author emphasizes urgency, noting that the world must reach net-zero emissions within 25 years to limit warming to 1.5°C, and suggests integrating Article 2.1c into UNFCCC processes like the Global Stocktake and Nationally Determined Contributions (NDCs).

• The realignment of finance flows is a critical prerequisite for achieving the Paris Agreement's goals of limiting global temperature increases and increasing climate adaptation capabilities.
• The paper proposes a three-part framework for governments and stakeholders to operationalise Article 2.1c: driving action to mobilise and shift finance, tracking progress, and increasing ambition.
• Governments have four primary categories of tools available to shift finance toward climate goals: financial policies and regulations, fiscal policy levers, public finance, and information instruments.
• Urgent action is required because current emissions trajectories are expected to exceed the 1.5°C carbon budget by 2030, and net-zero emissions must be reached within 25 years to maintain that limit.
• To achieve the objectives of Article 2.1c, the document recommends utilizing UNFCCC processes such as the Global Stocktake, nationally determined contributions (NDCs), and the enhanced transparency framework.

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} }