The G20 Sustainable Finance Roadmap recognises that financial authorities – including central banks and financial supervisors – have a critical role to play in (i) enabling financial market participants to take green considerations into account in all financial decisions and supporting green financial market growth and development, (ii) ensuring access to consistent, comparable and reliable climate- and broader sustainability related information that is decision useful to investors, and (iii) assessing and managing climate- and broader sustainability-related risks.
Despite significant progress recently, disparities exist across countries, with varying levels of regulatory maturity and capacity to address climate, environmental sustainability issues. These challenges include limited data availability, capacity constraints, and the need for increased international co-ordination to ensure harmonisation across standards and frameworks.
The OECD Clean Energy Finance and Investment Mobilisation (CEFIM) programme is supporting financial regulators and supervisors in several emerging markets and developing economies (EMDEs), including Indonesia and the Philippines, with capacity-building and knowledge-sharing on renewable energy, energy efficiency and broader sustainable finance policies.
The objectives of this session were:
- To delve into the crucial roles that financial regulators and supervisors play in accelerating the flow of capital towards environmentally sustainable activities across developed countries and EMDEs.
- To provide insights into the evolving landscape of financial regulation and supervision in the context of the green transition, while identifying key actions that regulators and supervisors can take to unlock the flow of green finance, particularly in the context of EMDEs, where the need for sustainable investment is most pressing.
- To discuss progress and innovations to date on developing financial regulation and supervisory guidance to help financial institutions better manage climate-related risks.
- To reflect on the challenges faces so far, domestically and internationally, as well as potential solutions to overcome them.