Significant knowledge gaps exist when it comes to the climate actions of public finance institutions. Going beyond the analyses of the subset of public financial institutions is key to understanding how best to align public finance to global climate ambitions.
This report tracked 70 largest public financial institutions, including development finance institutions, export credit agencies, public housing agencies and policy banks using a taxonomy developed by the Climate Policy Initiative for tracking finance-related climate commitments and institutional climate strategies.
The report finds that while headway is being made in some public financial institutions, much needs to be done to increase ambition across nearly all public financial institutions in line with the goals of the Paris Agreement. The analysis identified insufficient accountability measures and lack of guidance from global coalitions and governments as key barriers.