The Regulatory Framework for Clean Energy Growth Finance: Financing a Clean Energy Growth Economy

This is the fifth briefing in a series on how the transition to a clean energy growth economy with lower GHG emissions will be financed.

Document Highlights

The availability of, and access to, clean growth financing and risk management is inevitably guided by overall international and domestic policy and the regulatory environment. The G20’s Financial Stability Board (FSB) created a task force in 2015 on climate-related reporting by business. In 2016, the FSB provided detailed recommendations on four areas of action to improve the climate-related reporting for firms across many sectors. This briefing outlines these areas and also examines the European Union’s “sustainable finance” package. Further, the briefing discusses the Canadian expert panel on sustainable finance, created in spring 2018. The regulatory environment will be an important factor in determining the future shape of financing and its influence on the pathway toward lower GHG emissions. The policy ground is steadily shifting toward increased transparency and disclosure, with the goal of mitigating firm-level climate change risk and possible systemic financial risk.