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.

For this project, our team will assess the state of the sustainable finance taxonomies and the latest developments and research worldwide, which include not only the EU sustainable finance taxonomy, but also the climate bonds taxonomy, and other recent taxonomies under development. Specific emphasis will be placed on partner countries of GIZ, such as South Africa and Bangladesh.

Our work will culminate in a report and presentation to GIZ. In addition, following the completion of the analysis and report, CCAP will strengthen GIZ institutional capacity by providing a set of technical training to their staff.

The project will be headed by Margarita Cabrera, CCAP’s Climate Finance Program Manager. Supporting Ms. Cabrera in the day-to-day development of the project will be Climate and Sustainable Finance Specialist Jorge Hinojosa.

The deliverables in this project will help GIZ work with developing countries to achieve their sustainability goals and NDCs by providing a comprehensive analysis on the landscape of sustainable finance taxonomies, recent trends and a set of training to build institutional capacities.

CCAP has successfully completed multiple projects for GIZ and looks forward to another successful partnership.

CCAP helps policy makers around the world develop, promote, and implement innovative, market-based solutions to major climate, air quality and energy problems that balance both environmental and economic interests.

Core work areas include climate finance, developing country capacity building and facilitative dialogue, and the development of national climate strategies, sectoral mitigation programs and climate finance proposals.