There is, however, also a financial regulation side to it, and that is what central bank governors within the Finance track have concentrated on this year. Several issues have emerged, including data, modelling and risk management. The net-zero transition will require huge investments, and private finance must be a substantial part of this. In recent years, ‘sustainable’ finance has been growing significantly.
Today it represents a clear market trend. This is a good sign that private finance can be mobilised for the purpose of climate action. However, efficient market allocation of investment requires adequate information. In this respect, the situation is hardly satisfactory.