Climate Regulation and Policies

The Climate Regulation and Policies Programme at the EDHEC Climate Institute examines the normative landscape shaping climate risks, their assessment, and management; and provides actionable insights to enhance the integration of climate risks into decision-making and facilitate the transition to low-emission, climate-resilient economies.

The norms examined by the programme encompass:

• Regulation (hard law): Legally binding rules set by governments and regulators.
• Voluntary standards (soft law): Industry frameworks, reporting guidelines, and corporate commitments.
• Market and societal expectations: Investor demands, consumer behavior, and public pressure influencing business and financial strategies.

The programme analyses how these normative forces shape the climate strategies of financial institutions, non-financial businesses, and public-sector entities, and how these actors influence and respond to evolving norms.

Sustainable finance regulation is a key focus area, encompassing fiduciary duties, disclosure requirements, prudential oversight, and tools and instruments for green, transition, and climate solutions finance.

However, the programme’s scope extends beyond sustainable finance regulation to encompass broader financial and economic regulation that may exacerbate or mitigate climate risks and support or hinder technological, market, financial, policy, and business governance responses to these risks.

Our research covers:

• Assessing climate-related financial and economic regulation: We track and critically evaluate global developments in sustainable finance and broader financial and economic regulations that influence climate risks, their assessment and management, and the allocation of capital to climate change adaptation and mitigation investments.
• Developing actionable recommendations for better regulation: Our work goes beyond compliance, proposing improvements to norms, standards, and guidelines that align capital markets and investment flows with scientific insights on adaptation and mitigation, while recognising sectoral, value chain, and geographic disparities.
• Providing a structured reference for market participants: Through an annual flagship publication, we deliver a comprehensive and critical assessment of climate-related regulation, offering a benchmark for businesses, investors, and policymakers.
• Strengthening the integration of climate risks into decision-making: By identifying best and better practices and barriers in regulatory frameworks, we equip stakeholders with insights to navigate risks and opportunities, influence policy evolution, and advance sustainable finance.
• Facilitating informed climate action through integrated research: By synthesizing insights from our diverse research streams and engaging in regulatory and standards discussions, we enhance the Institute's capacity to drive effective climate strategies through a detailed and multidisciplinary approach.

Key publications

• Charting a Pathway for Transition Finance – Challenges and Opportunities in the EU Sustainable Finance Framework (December 2024)
• Scope for Divergence – A Review of the Importance of Value Chain Emissions, the State of Disclosure, Estimation and Modelling Issues, and Recommendations for Companies, Investors, and Standard Setters (March 2024)
• Greenwashing Regulation (February 2024)
• Sustainability Reporting and Material Delusions (October 2023)

The expert

• Frédéric Ducoulombier, Programme Director, Climate Regulation Research and Advocacy