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T1 Emissions Gap Report 2022 - Chapter 7
A2 Couto, Lilia
A2 König, Michael
A2 Pauw, Pieter
A2 Dasgupta, Dipak
A2 Zamarioli, Luis
A2 de Coninck, Heleen
K1 financial flow
K1 environmental financing
K1 climate change
K1 climate change mitigation
K1 low-carbon transition
PB United Nations Environment Programme
SN 978-92-807-3979-4
YR 2022
FD 2022-10
LK https://wedocs.unep.org/handle/20.500.11822/40931
UL https://wedocs.unep.org/handle/20.500.11822/40931
NO A realignment of the financial system is a critical enabler of the sectoral transitions required to address the current climate crises. Article 2.1(c) of the Paris Agreement calls for this and establishes a new objective for all countries to make finance flows consistent with low-carbon and climate-resilient development pathways (United Nations Framework on Climate Change Convention [UNFCCC] 2015). In contrast to the mobilization of climate finance for developing countries under the UNFCCC (article 9), another key goal, the climate consistency of finance flows represents a new purpose that relies on support and action to transform the global financial system (Zamarioli et al. 2021). This chapter therefore focuses on a transformation of the financial system that engages all relevant actors, including governments, central banks, commercial banks and institutional investors. The success of the transformation can ultimately be measured based on two indicators: a rapid increase in investments in low-carbon assets worldwide and a rapid decrease in investments in greenhouse gas-intensive assets. Although this has significance for all sectors, examples in this chapter focus on the energy sector, where literature on finance and transformation is emerging (Steffen and Schmidt 2021).
DS UN Environment Document Repository
RD Sep 17, 2026