Financing the Future: CPI’s Net Zero and Sustainable Finance Integrity Platform
As the financial sector starts to mainstream climate action into its strategy and operations, we need to address four fundamental questions to ensure a credible path to net zero by 2050:
- Where are we? What is the current state of climate finance by geography and sector.
- Where are we currently headed? What is our current climate finance pathway based on announced commitments by public and private entities.
- Where do we need to be? What is the gap between current commitments and commitments that would actually produce net zero by 2050.
- How do we get there? What policies and implementation tools would help shift financial systems towards credible alignment and maximize investment opportunities.
At CPI, our work helps governments, businesses, and financial institutions answer each of these four questions by:
Understanding and defining the integrity of commitments—and their real economy impacts—through the development of assessment frameworks and methods.
Our work in this area includes:
- The Framework for Sustainable Finance Integrity
- Private Financial Institutions Paris Alignment Commitments
- Public Financial Institutions Paris Alignment Commitments
- A Proposed Method for Measuring Paris Alignment of New Investment
Measuring progress in financial systems via tracking analysis and tools.
Our work in this area includes:
- Climate Finance Tracking Program
- Net Zero Finance Tracker
- Paris Misaligned – Finance in the Power Sector
- Paris Alignment of Power Sector Finance Flows in India
- Paris Alignment of Power Sector Finance Flows in Indonesia
Designing and supporting implementation through decision-making frameworks and actor-specific guidance.
Our work in this area includes:
- Credible Transition Plans
- Guidelines for Financing Credible Coal Transitions
- Paris Alignment Implementation for Development Finance Institutions
Convening networks of practitioners to share data and knowledge, provide local context, guide development, and champion action within their spheres of influence.
Our work in this area includes:
- San Giorgio Group
- The Advisory Council for Sustainable Finance Integrity
- The Climate Aligned Finance Tracking Group
All supported by CPI’s sophisticated data science tools.
Featured work
Publication
Framework for Sustainable Finance Integrity
Framework for Sustainable Finance Integrity provides first-of-its kind guide to necessary action across the public and private financial sectors
Publication
What Makes a Transition Plan Credible? Considerations for Financial Institutions
The brief highlights six necessary elements that every climate transition plan should address for a credible transition plan.
Latest work
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Are Indonesian Banks Ready to Account Climate-related Matters?
Based on a focus group survey involving Indonesia’s major commercial banks, Climate Policy Initiative has analyzed the country’s financial sector readiness and progress in assessing, reporting, and disclosing climate-related matters against national guidelines and international best practices.
Publication
The Challenges in the Adoption of Sustainable Practices by Small Ranchers. The Case of ABC Cerrado
In this study, researchers from CPI/PUC-Rio evaluate the impact of training and technical assistance delivered by the ABC Cerrado Project and provide resource-channeling options aimed at achieving greater adoption of sustainable practices in rural areas.
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Global Landscape of Climate Finance: A Decade of Data
Public and private climate finance almost doubled between 2011 and 2020. However, reaching climate objectives will require climate investment to increase at least seven times by the end of this decade.
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Public Financial Institutions' Climate Commitments
Public financial institutions are falling behind on climate commitments.
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Roadmap for Sustainable Infrastructure in the Amazon
In this study, CPI/PUC-Rio researchers have mapped the main phases of the life cycle of land transportation infrastructure projects, addressed the decision-making process, and developed methods to map projects’ economic and environmental impacts.
Publication
Private Financial Institutions’ Paris Alignment Commitments: 2022 Update
A thorough tracking and analysis of public commitments to address climate change from more than 450 private financial actors across four financial sectors (asset owner, asset manager, commercial bank, insurer).
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Paris Alignment of Power Sector Finance Flows in India: Challenges, Opportunities, and Innovative Solutions
This brief identifies the challenges and opportunities in financing India’s ambitious renewable energy targets.
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Paris Alignment of Power Sector Finance Flows in Indonesia: Challenges, Opportunities and Innovative Solutions
This brief examines the challenges and opportunities in financing Indonesia’s ambitious targets on renewable energy towards an energy transition.
