Greening Public Financial Institutions: Lessons From the G20

Policy Brief 2023 Swasti Raizada, Natalie Jones

This Policy Brief was first published in https://t20ind.org

Steeper cuts to energy emissions will be needed to limit the average global temperature rise to 1.5˚C, and shifting public fi nancial ﬂ ows away from fossil fuels towards clean energy will be key to bridge the ‘Great Green Gap’. Greening public fi nancial institutions (PFIs) will be critical to scaling fi nancing for the Sustainable Development Goals (SDGs) and crowd in private capital. Through examining recent trends and select case studies on energy fi nance, this Policy Brief proposes solutions to improve data transparency on the portfolio emissions of PFIs, reform the international climate fi nancearchitecture,andbuildcapacity among national and subnational PFIs through technical assistance programs to evaluate climate risks and green their portfolios. These solutions can strengthen the existing commitments of the G20 member states and inform G20 Working/Expert Groups.