Produced in partnership with Finance for Tomorrow, like its three previous editions, the Global Climate Finance Report provides a new detailed overview and monitoring of climate action by banks, insurers and investors. It also presents the dynamics of the market with the evolution and the offer of green financial products.
Given the need for coherence in the actions of finance with regard to climate and environmental issues, the Global Climate Finance Report 2022 provides a global overview and an essential analysis of all financial flows that enable the implementation of actions that have a positive impact on mitigation (reduction of GHG emissions) or adaptation to climate change.
- Financial flows for climate change are increasing but remain lower than the financing devoted to fossil assets. The recent climate stress tests conducted in Europe reveal banks’ lack of preparation for climate risks.
- Among these climate flows, financing for adaptation is growing rapidly but remains far from the parity with mitigation targeted by the Paris Agreement.
- The net-zero strategies of financial actors are not accompanied by commitments to exit fossil fuel activities.
- Financing instruments for the transition (green bonds, carbon credits, etc.) are booming. But the ESG market lacks overall transparency, homogeneity and accessibility of data to guarantee the quality of products.
- In this sense, the development of taxonomies around the world and transparency standards (SFDR regulation in Europe) is laying the first stones for institutional guidance of financiers towards transition-compatible activities.