A financial sector that incorporates risks and opportunities resulting from climate change will enhance investment decisions and increase the flow of finance. The goal under Helsinki Principle 5 is to develop tools for mobilizing private sector financing, share experience, support international standard setting, and share best practice among Members.
Members can be instrumental in mobilizing private sources of finance toward climate action in their capacity as Finance Ministers, and by complementing Central Banks and market regulators. Mindful of the different stages of financial market development and positions of Members, key actions and deliverables under Helsinki Principle 5 include:
- Supporting the preparation of national financial strategies / roadmaps for greening finance.
- Exploring approaches to encourage financial institutions to align their practices with the NDCs and the goals of the Paris agreement.
- Sharing experience on the issuance of green bonds and use of other financial instruments.
- Identifying strategies to incorporate climate risks and opportunities into investment decisions, such as supporting global efforts for transparency and disclosure of climate-related financial risks and impacts, identifying risks to financial stability posed by climate change, and considering ways to manage these risks. Institutional Partners are undertaking stress tests on climate related risks and developing tools for supervisors that will also help Members manage risk.
- Identifying measures to address the issue of high cost of capital for adaptation and mitigation investments in developing countries.
- Supporting the efforts of multilateral development banks in mobilizing climate finance, and accelerating the dissemination of international best practices.
- Sustainable Finance Roadmaps (led by Luxembourg and Mexico)
- Financial Stability and Supervision (led by the UK)
- Financial Guidelines and Regulation (led by the Netherlands)
- Green bonds and Other Financial Instruments (led by Ireland and Kenya)
- Blended Finance and Adaptation (led by Luxembourg)
Actively Engaged Partners
- African Development Bank
- European Bank for Reconstruction and Development
- European Commission
- European Investment Bank
- Global Green Growth Institute
- Inter-American Development Bank
- International Monetary Fund
- Nordic Investment Bank
- Network for Greening the Financial System
- United Nations Development Program
- World Bank Group
- Climate-Related Risks for Ministries of Finance: An Overview (May 2021)
- Introduction to Commitments and Measurement Methods for Private Financial Sector Portfolio Alignment with the Paris Agreement: Summary for Policymakers (May 2021)
- An Analysis of Sustainable Finance Roadmaps: Charting the Path to Financial System Transformation (November 2021)