Titelbild: Finanzierung

Sustainable finance or green finance is the set of financial regulations, standards, norms and products that pursue an environmental objective, and in particular to facilitate the energy transition.

News

Publication

As countries transition to low-carbon and climate-resilient economies, finance flows will need to shift to support these transitions, in line with the third long-term goal of the Paris Agreement, Article 2.1c. South Africa was the first country to sign a Just Energy Transition Partnership (JETP). In this context, South Africa developed a Just Energy Transition Investment Plan (JET IP) laying out a series of policies and regulations the country would implement to achieve its just energy transition. This paper offers an analysis of these policies and regulations, using existing Article 2.1c approaches.

Publication

India’s transition towards a low-carbon economy is central to achieving global climate goals. How can international cooperation support Indian efforts? In our policy brief, we argue that “True Partnerships” between India and the Global North should put the poeple, equity, and climate action at the core of cooperation, to achieve a transition that is green and just.

Blogpost

In March 2023 the IDB Group published its “Paris Alignment Implementation Approach: Principles, Methodology, and Technical Guidance” (PAIA). The document is based on the joint MDB framework and lays out how the IDB plans to adapt the framework to its own institutional procedures. This blog post provides an overview on what are promising, concerning and unclear elements in the IDB Group’s general Paris alignment methodology.

Publication
Briefing series on the reform of the international financial architecture #2

The current international scenario is characterised by a complex web of global crises. This situation is having a particularly negative impact on the countries of the Global South, which are facing considerable financial constraints that are hindering the implementation of the 2030 Agenda. In this context, the French Government is organising the Summit for a New Global Financing Pact on 22-23 June 2023, which aims to forge a new pact between Global North and Global South countries.

Blogpost
The World Bank Group draft "Paris Alignment" methodology needs to move from a principle of "do no harm" to "do the maximum possible" to deliver on the Paris Agreement
The World Bank Group (WBG) has published the first set of documents beginning to detail how they will align their investments with the Paris Agreement – the so-called “Paris Alignment Methodology”. The publication of these methodologies is a long overdue first step to deliver on the commitment to align the WBG operations with the goals of the Paris Agreement. They will need to be strengthened and clarified to fully align the WBG investments with the Paris Agreement.
Publication
A primer

The emerging polycrisis is challenging governments and institutions around the world. Especially countries in the Global South lack the financial capacity to address the current challenges and simultaneously prepare their nations for the impacts of climate change. The existing international financial architecture has so far been unable to provide the necessary financial resources.There are three major reform proposals that address different institutions within the international financial architecture. This primer introduces the proposals presented and provides an overview of the main institutions and actors involved in the process in Germany.

Publication
Lessons from Africa

The multi-country projects and programmes financed by the Green Climate Fund (GCF) are of particular interest to African civil society organisations (CSOs) that, through their engagement with GCF processes and financed activities in their countries, have identified several concerns with their implementation.

News
NGOs warn against reduction in ambition
Together with the Alliance for Corporate Transparency and a number of other NGOs and think tanks, Germanwatch has commented on the proposals of the European Financial Reporting Advisory Group (EFRAG) in a press release. Germanwatch welcomes the adoption of the EU Sustainability Reporting Standards (ESRS), which EFRAG submitted to the European Commission this week. Although the ambition of the standards remains limited in some areas, they represent a significant improvement for companies and users of sustainability information and address the biggest issues in the quality and reliability of corporate reporting. Please find the press release below:
Blogpost

A ‘race to the top’ or global crawl? Despite global climate negotiations at COP27 and the G20 inching far too slowly towards the financial transformations we need to tackle climate change, country-level progress is being made. A common framework would help track that progress.

Publication

One of the three main goals of the Paris Agreement is to ‘make finance flows consistent with a pathway towards low greenhouse gas emissions and climate-resilient development’, as stated in Article 2.1c. This long-term goal recognises that, complementary to an increase in finance that supports climate action, there needs to be redirection of finance, both public and private, that locks countries into a future of low emissions and higher resilience. Given that Article 2.1c has yet to be fully operationalised, this case study examines the progress towards implementing it in Germany. It is a first attempt to provide a comprehensive analysis framework for the implementation of Article 2.1c.