News: Climate Week NYC- Powering Solutions Ahead of COP30. Read it here.
Parts of this site were translated using AI. Accuracy may vary.
News: Climate Week NYC- Powering Solutions Ahead of COP30. Read it here.
Parts of this site were translated using AI. Accuracy may vary.
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.
Axis: Unleashing Enablers and Accelerators including on Financing, Technology and Capacity-Building
Key Objective: 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.
1)Jurisdictions participating in the International Platform on Sustainable Finance (IPSF)—a key forum for advancing taxonomy interoperability—account for 55% of global GDP.
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)
