The climate consistency goal and the transformation of global finance

Luis Zamarioli; W.P. Pauw; Michael König; Hugues Chenet

doi:10.1038/s41558-021-01083-w

The climate consistency goal and the transformation of global finance

Luis Zamarioli, W.P. Pauw, Michael König, Hugues Chenet

Research output: Contribution to journal › Article › Academic › peer-review

Abstract

Controversy remains over the climate consistency of finance flows despite its centrality in the Paris Agreement (Article 2.1(c)). Two main interpretations dispute the goal’s reach, threatening its transformational potential. If left unresolved, the controversy may also mask trade-offs, allowing for unintentional harm to countries already vulnerable to climate change. Here we build on four methods to show that Art. 2.1(c) comprises a new meaning of ‘finance’ under the United Nations negotiations. In contrast to climate finance provision to developing countries (Art. 9), the climate consistency of finance flows represents a purpose that relies on support and action to transform the global financial system. Implementation of Art. 2.1(c) requires engagement by governments and non-state actors, including the financial sector. While solutions for Art. 2.1(c) will need to be adequate for countries’ contexts, accounting of trade-offs should ensure some level of convergence towards a global, timely and equitable progress towards climate consistency of finance flows.

Original language	English
Pages (from-to)	578-583
Number of pages	6
Journal	Nature Climate Change
Volume	11
Issue number	7
DOIs	https://doi.org/10.1038/s41558-021-01083-w
Publication status	Published - Jul 2021

Bibliographical note

Funding Information:
This work was financially supported by the German Ministry of Economic Cooperation and Development (BMZ), with agreement GZ: 414 K8187-0372/001. The funder had no role in the study design, data collection and analysis, decision to publish or preparation of the manuscript. We specially thank our interviewees for their contribution to this research.

Publisher Copyright:
© 2021, The Author(s), under exclusive licence to Springer Nature Limited.

Keywords

climate finance
UNFCCC
Article 2.1c
financial flows
climate consistency

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

Access to Document

10.1038/s41558-021-01083-w

s41558-021-01083-wFinal published version, 1.14 MBLicence: Taverne

Cite this

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The climate consistency goal and the transformation of global finance

Abstract

Bibliographical note

Keywords

UN SDGs

Access to Document

Other files and links

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