News: Granary of Solutions platform launches to boost global sustainable initiatives. Read it here.
Parts of this site were translated using AI. Accuracy may vary.
News: Granary of Solutions platform launches to boost global sustainable initiatives. Read it here.
Parts of this site were translated using AI. Accuracy may vary.
20. Climate and sustainable finance, mainstreaming climate in investments and insurance
A framework designed to enhance comparability and interoperability among the increasing number of national and regional sustainable finance taxonomies. It establishes a common core set of definitions, principles, and technical criteria to reduce market fragmentation and facilitate cross-border capital flows.
How this solution relates to the action agenda
Axis: Unleashing Enablers and Accelerators including on Financing, Technology and Capacity-Building
Key Objective: 20. Climate and sustainable finance, mainstreaming climate in investments and insurance
With around 57 taxonomies worldwide (either under development or already in operation), interoperability is crucial to scaling up international climate finance. It helps reduce transaction costs, avoid duplicative verification, enhance market confidence, and prevent greenwashing. Greater alignment also provides clarity and certainty for investors, facilitating the channeling of global capital to where it is most needed, particularly in emerging markets, to support achievement of the Paris Agreement goals.
Sources:
IPSF Annual Report 2023 (https://finance.ec.europa.eu/system/files/2023-12/231204-ipsf-annual-report_en.pdf)
Green Finance Institute. 2025. “International Taxonomies Tracker.” Available at: <https://experience.arcgis.com/experience/c315245a18354ec5b58f54c1162a3014/>.
Roadmap for Advancing Interoperability and Comparability of Sustainable Finance Taxonomies (https://www.sbfnetwork.org/roadmap-for-advancing-interoperability-and-comparability-of-sustainable-finance-taxonomies)
Common Framework for Sustainable Finance Taxonomies for Latin America and the Caribbean
The LAC Taxonomy Common Framework aligns sustainable finance across the region, guiding net-zero transitions, boosting resilience, and enabling cross-border flows for green investments.
Promoting Interoperability Across Environmental and Social Risk Management Frameworks in EU
The IFC and Equator Principles Association study compares the EU Taxonomy’s DNSH and safeguards with IFC Performance Standards and World Bank EHS Guidelines to support sustainable finance alignment.
International Platform on Sustainable Finance
The platform is a forum for dialogue between policymakers, with the overall aim of increasing the amount of private capital being invested in sustainable investments.
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