Thu. Mar 4th, 2021

Regulation HK

Financial Regulator

IIF Offers Recommendations on Aligning Climate Finance Regulation

1 min read

The recommendations are aimed at promoting consensus and international alignment in sustainable finance policy and regulation.

The IIF (Institute of International Finance) has issued a statement setting out ten recommendations for international regulators and policymakers to support the transition to a sustainable, low carbon economy.

The recommendations are aimed at promoting consensus and international alignment in sustainable finance policy and regulation.

“We need reliable, easily accessible and comparable datasets, metrics, methodologies, standards and frameworks to ensure that climate-related risks are appropriately managed and disclosed,” the IIF said.

The recommendations are:

  • Provide clear, long-term policy signals that foster innovation in financial services
  • Set science-based climate policy goals
  • Prioritise international and cross-sectoral engagement
  • Price carbon and leverage the power of markets
  • Minimise costs and support jobs in the transition
  • Foster international convergence on taxonomy, data standards and metrics
  • Promote robust climate disclosure and international harmonisation of standards
  • Ensure climate-related financial regulation remains risk-based
  • Build capacity on climate risk modelling and scenario analysis
  • Strengthen post-disaster recovery, risk mitigation and adaptation

The full statement is available here.

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