Search Climate Insights Directory

The report finds that while Indonesian banks show high compliance with national sustainability reporting mandates (POJK 51/2017) and are increasing their green portfolios, they lack the capacity and frameworks to implement detailed climate-related financial disclosures. Benchmarking against TCFD reveals significant gaps in governance, strategy, risk management, and metrics, with no surveyed bank fully aligned. Climate-related impacts are not yet integrated into formal financial statements or risk assessments like the ICAAP, though there is a growing trend toward adopting green taxonomies.

The author contends that the EU's adherence to strict debt-to-GDP ratios and austerity has undermined public services, lowered living standards, and hindered the energy transition. The text calls for a shift away from the 'fiscal straitjacket' of the Maastricht criteria toward a framework that empowers national governments and the European Commission to invest in carbon emission reductions and social infrastructure.

In 2021, IDFC members committed a record USD 224 billion in green finance, a 21% increase from 2020. Climate finance dominated the total at 95% (USD 212.7 billion), with mitigation finance reaching a peak of USD 186.6 billion. Conversely, adaptation finance fell by 24% to USD 20.9 billion, largely due to a 50% drop in disaster risk reduction commitments. Biodiversity projects saw growth, reaching USD 18.4 billion.

The report examines the growth of green bonds in emerging markets, identifying critical success factors such as sound regulatory frameworks, investor demand, public sector participation, and macroeconomic stability. It details barriers including underdeveloped capital markets, a lack of bankable projects, and the risk of greenwashing. The document provides a five-step issuance process and analyzes the roles of development banks and national governments in catalyzing markets. Case studies on India and Kenya illustrate different stages of market readiness, from a corporate-led leader (India) to a nascent market (Kenya), offering tailored policy advice to enhance sustainable finance flows.

The Forest Declaration Assessment provides a structured monitoring tool for the Congo Basin, utilizing 50 indicators across four themes: forest goals, sustainable production and development, forest finance, and forest governance. The framework evaluates the quality and implementation of policies adopted by public and private stakeholders. Additionally, the document provides a detailed comparative annex of the existing forest laws, coordinating entities, and strategic policies in Cameroon, Gabon, the Democratic Republic of the Congo, and the Republic of the Congo.

The report identifies Geneva's high density of international expertise and neutrality as key strengths for SDG implementation, but notes that collaboration is hindered by bureaucratic processes, institutional silos, and a lack of accessible, informal gathering spaces. It recommends the establishment of a curated, inclusive, and inspiring physical space in the Nations area to facilitate networking, skills development, and the showcasing of innovations across the public, private, and academic sectors.

The document argues that while the costs of climate action are high, the costs of inaction are higher, noting that physical climate risk has already increased the cost of capital for V20 countries by USD62bn over 10 years. It proposes a three-pillar policy framework: providing clarity on green investments via taxonomies, tilting investment toward green opportunities through de-risking and carbon pricing, and building green investment pipelines. Key mechanisms suggested include the use of junior capital by development finance institutions to mobilize private investment, the removal of fossil fuel subsidies, and the implementation of carbon border adjustment mechanisms (CBAMs). The summary concludes with a list of 101 specific policy ideas across sectors including energy, transport, and agriculture to be detailed in a full report.

The report finds that public financial institutions are lagging behind private counterparts in setting credible climate targets. While some Multilateral Development Banks (MDBs) show leadership, national and subnational development banks, as well as institutions in non-OECD countries, have very few Paris-aligned or net-zero commitments. Key barriers include a lack of government guidance and insufficient accountability mechanisms within global coalitions.

The methodology brief describes a framework for tracking public financial institutions' climate commitments, categorizing them into targets and pledges (such as Paris-aligned, net zero, and exclusion policies) and institutional strategies. It details a data collection process involving automated scraping of institutional websites, news articles, and the analysis of over 120 sustainability and annual reports for 70 entities representing USD 20.4 trillion in assets.

The report finds that global forest finance is not on track to meet 2030 goals, with current mitigation finance averaging USD 2.3 billion per year—less than 1 percent of the estimated USD 460 billion annual requirement. It highlights a stark imbalance where 'grey finance' (harmful investments) significantly outweighs 'green finance,' and notes that Indigenous Peoples and local communities remain severely underfunded. While 2021 pledges could quadruple annual finance to USD 9.5 billion, this remains insufficient. The report also analyzes the limited impact of voluntary and compliance carbon markets and the slow progress of REDD+ frameworks.

The Climate Finance Training Programme, running from November 2020 to March 2025, aims to establish a twinning arrangement between UK and African academic institutions to enhance climate finance capacity in Sub-Saharan Africa. The programme seeks to increase investments in climate-resilient projects and create a regional centre of excellence in green finance. As of October 2022, two cohorts of 22 participants each had completed the Africa Climate Finance Leadership Programme, with a third cohort scheduled for the final quarter of 2022.

The Kenya Green Bond Programme (2017-2021) focused on developing the green bond market in Kenya through policy reform, capacity building, and the creation of supportive regulatory frameworks. Key outcomes include the development of NSE Green Bond Listing Rules, the passage of tax incentives by parliament, and the mobilization of GBP 64.95 million in private finance for climate purposes, including Kenya's first green bond. The programme also trained over 20,000 bank employees via e-learning and provided training to 16 Kenyan verifiers.

The document describes an ongoing scoping study in Morocco aimed at addressing the green finance gap. The project focuses on identifying financial instruments and structures to support green SMEs and projects, with a feasibility analysis currently in progress to inform the development of a new financing instrument.

The Risk, Resilience and Regulatory Lab (R3LAB) is a collaborative platform for African insurance regulators aimed at improving supervisory skills and fostering innovation. It provides capacity-building programs, peer exchange, and learning toolkits to address regulatory gaps. A key output includes 'insurance innovation portraits' for eight countries, which identify barriers to innovation and propose action plans based on six assessment areas, including infrastructure, finance, and the regulatory environment.

The study finds that the Swedish finance sector is cautious regarding risk and unlikely to lead sustainability transitions without significant government intervention, such as CO2 taxes or risk-mitigation mechanisms.

Earthjustice supports the Inflation Reduction Act's unprecedented funding for renewable energy, building electrification, and climate justice for disproportionately affected communities. However, the organization condemns 'atrocious concessions' for the fossil fuel industry, such as mandatory lease offers and carbon capture tax subsidies, which it argues threaten ecosystems in the Gulf Coast, Appalachia, and Alaska.

Reclaim Finance argues that the proposed updates to the French ISR label are 'minimalist' and designed to ensure existing funds retain their label rather than drive a real energy transition. While the label may introduce exclusions for coal and unconventional energy, the organization warns that revenue-based thresholds could allow major oil and gas companies like TotalEnergies, BP, Shell, and ExxonMobil to remain eligible. Reclaim Finance specifically calls for the exclusion of companies developing new oil and gas fields to align with a 1.5°C trajectory and carbon neutrality by 2050.

Tracked green finance in India averaged INR 309 thousand crores (~USD 44 billion) per annum in FY 2019-20, which is less than 25% of the annual amount required to meet the country's Nationally Determined Contributions (NDCs). While flows increased by 150% from FY2017/18 to FY2019/20, the report highlights a critical shortfall in adaptation funding and a heavy reliance on public sector finance for clean transportation. The study recommends the development of a green taxonomy, improved data disclosure, and the scaling of capital markets to mobilize the trillions of dollars needed for India's 2030 and 2070 Net-Zero goals.

The report details a comprehensive methodology for mapping green finance in India, focusing on mitigation activities across clean energy, energy efficiency, and clean transportation. It defines a taxonomy for green finance, identifies diverse data sources—including government budgets, OECD reports, and PSU financial statements—and establishes accounting principles to prevent double counting. The methodology employs specific proxy calculations for sectors like electric vehicles and rooftop solar, while utilizing a standard 70:30 debt-to-equity gearing ratio where specific project data is unavailable.

FSD Africa's Capital Markets team works to address financing gaps in Africa by developing enabling policies, market infrastructure, and innovative financial products. The report highlights the mobilization of approximately GBP 320 million through bond issuances, including pioneering green and gender bonds in countries like Nigeria, Kenya, and Morocco. It details the Africa Regulatory Support Programme (ARSP) and the African Local Currency Bond Fund (ALCB Fund) as key mechanisms for reducing currency risk and increasing private sector investment. Moving forward, FSD Africa is concentrating its efforts on five priority countries—Ethiopia, Ghana, Kenya, Morocco, and Nigeria—with a strong emphasis on green capital markets and natural capital finance.