
The accelerating threat of climate change raises the urgency of commitment to climate transition, including the important role of global financial markets to align investment with net zero. Although financial markets are beginning to integrate climate transition risks and opportunities into investment decision making, a number of constraints are preventing the scaling up of investment to foster orderly transitions to low-carbon economies, notably insufficient data, financially material metrics and analytical tools.
This report focuses on the critical contribution financial markets must play towards achieving an orderly transition to low-carbon economies, and the policies needed to support this. It also explores the key elements that could factor into market pricing of climate transition risks and opportunities, offers frameworks and case studies, reviews the growing range of market products and practices, and puts forward policy options that can support this transition.
The report is part of a multi-year body of work by the OECD Committee on Financial Markets to consider aspects of market resilience as governments and financial market participants address the challenges of the transition to low-carbon economies.