CCAP to analyze sustainable finance taxonomies

The Center for Clean Air Policy (CCAP) has been awarded a consulting project from the German non-profit Deutschen Gesellschaft für Internationale Zusammenarbeit (GIZ) to provide a comprehensive analysis on current sustainable finance taxonomies and recent trends in their development.

CCAP supports international efforts to develop a common ground of language around sustainable finance taxonomies and is thrilled to be able to share its expertise with the GIZ. This project is being realized as part of CCAP’s broader goal to facilitate sustainable finance.

Increasingly, the financial industry is expected to comply with sustainable finance taxonomies, which have the purpose of aligning investments to the transition in diverse countries. Taxonomies allow governments and investors to have a common understanding on environmental, social and governance criteria, including climate regulation and disclosures. These tools also enable governments and investors to accurately and properly assess proposed projects and outcomes with specific sustainable investment indicators. Without formalizing sustainable finance metrics, it will be impossible for countries to achieve their nationally determined contributions (NDCs), as pledged under the framework of the 2015 Paris Agreement.

In July, the EU formally adopted its own sustainable finance Taxonomy, which has become a benchmark as other countries and governmental entities seek to formalize and standardize sustainable investments and climate-related disclosures.