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To combat climate change effectively, it is crucial for financial systems to align with net-zero and climate resilience goals. This review evaluates progress in aligning financial flows with these objectives, tackling key challenges like greenwashing and inconsistent assessment frameworks.
The review examines the current alignment of finance with climate goals and outlines obstacles that hinder accurate assessments, including fragmented data and varied methodologies.
It also calls for a coordinated approach using complementary metrics to reduce greenwashing and increase transparency in climate alignment reporting.
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