Global Financial Stability Report 2023. Chapter 3: Financial Sectors Policies to Unlock Private Climate Finance in EMDEs

Year Published

2023

Contributing Organizations

International Monetary Fund (IMF)

Type of Resource

Research/Insights Report

Languages

English

Relevant Topics

Core Topic

Climate Policy & Policy Engagement

Topic 2

Regulations

Topic 3

Taxonomies

Target Audience

Governments & Policymakers

Relevant Geography

Global

Resource Description

This chapter examines how financial systems can align with climate mitigation goals by redirecting capital toward low-emission investments. It highlights the role of policy, financial institutions, and international cooperation in enabling the shift.

Why This Matters

Reaching net zero requires scaling climate finance and shifting capital from high- to low-emission assets. Collaborative action is key to drive investment, reduce risk, and support a just transition.

Key Insights

Global financial flows remain misaligned with the Paris Agreement, with fossil fuel investments exceeding clean energy
Alignment depends on clear policies, taxonomies, risk disclosures, and credible net zero transition plans
Regulators, central banks, and finance ministries can guide expectations and manage systemic risks
Green bonds, blended finance, and transition plans help mobilize capital
Greater international collaboration is needed to improve standards and avoid fragmentation and greenwashing

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