This policy brief urges central banks, financial regulators and supervisors and international standard-setters to play a (more) active role in supporting the G20’s agenda on transition finance. In fact, the G20 has recognised the importance of transition finance to achieve the Paris Agreement and SDGs, adopting a principles-based approach. Acknowledging that transition plans and planning are essential for all economic system participants – from national states to financial institutions to corporates – this policy brief focuses on financial institutions, central banks and financial supervisors as preparers and users oftransition plans. The last two should ‘lead by example’ and become preparers oftheir own transition plans by incorporating climate- and nature risks into their own objectives and strategies and set clear expectations for financial institutions. It also urges the G20 to mandate the FSB and all international standard setters to foster convergence and interoperability.
