“NGFS Report: Enhancing market transparency in green and transition finance
On 11 July 2022, over 80 international experts gathered at a SUERF-Baffi Bocconi webinar to discuss key findings from a report by the Network on the Greening of the Financial System (NGFS) entitled “Enhancing market transparency in green and transition finance”.
Given the pressing need to achieve progress with climate protection, central banks and financial supervisors are showing a growing interest in issues of market transparency in green finance, particularly with regards to taxonomies, green external review and assessment, as well as climate transition metrics, frameworks, and market products. A substantial report by the NGFS leverages the experience of NGFS members and observers, as well as a survey of 25 central banks and 24 financial supervisors, to shed light on the state of play and key challenges on these topics.
The report also aims to inform a broad dialogue with market participants to find solutions to policy challenges.
Irene Monasterolo, Professor of Climate Finance at EDHEC-Risk Institute brings her insights on the paper presented and more specifically on the importance of taxonomies and their use. We are experiencing (it has been highlighted by the last IPCC report in chapter 15 on investments and finance) a lack of policy coherence and credibility and with policy we mean climate and economic policies. This would affect the relevance of taxonomies for sustainable finals. Irene also talked about important topics such as climate transition metrics & frameworks. She presented the development of an enhance measure of greenness to tame greenwashing.
About EDHEC
Operating from campuses in Lille, Nice, Paris, London and Singapore, EDHEC is one of the world’s top 15 business schools. Fully international and directly connected to the business world, EDHEC commands a strong reputation for research excellence and the ability to train entrepreneurs and managers capable of breaking new ground. EDHEC functions as a genuine laboratory of ideas and produces innovative solutions valued by businesses. The School’s teaching is inspired by its research work and a focus on “learning by doing”, all with the aim of equipping people with the skills to succeed in business.
