Finance for tomorrow

Information presented in this profile is for reference only. The Climate Action in Financial Institutions Initiative does not guarantee as to the exhaustiveness of this information and invites you to contact the Secretariat (contact@mainstreamingclimate.org) if you wish to propose any modifications.

By including this profile, the Initiative, its Supporting Institutions and the Secretariat do not endorse the activities described below nor the guidance and information provided in this profile.

Last updated: October 2018

Website:  financefortomorrow.com/en/ 

Contact: Anne-Claire ROUX, Director,ac.roux@paris-europlace.com

Summary: “Gathering more than 60 members and international observers, Finance for Tomorrow is the initiative launched in June 2017 within Paris EUROPLACE to make green and sustainable finance a key driving force in the development of the Paris Financial Center, in order to position it as the international hub on these issues.”

What are the objectives of the initiative?

“The challenge for the Paris financial marketplace now is to join forces and give itself the means to strengthen synergies and collaborations in order to develop its exceptional ecosystem to serve sustainable development financing”. [2]

Who launched it? Who is participating?

The Initiative first called the Green & Sustainable Finance Initiative was launched in 2016 by Paris EUROPLACE, which supports and develops the France-based financial services industry and promotes Paris as an international financial center. In June 2017, the Initiative was renamed “Finance for Tomorrow”.  As of October 2018, it gathers more than 50 members, which are “private, public and institutional players wishing to commit themselves to a finance that is based on a sustainable future and combines long-term investment and environmental and social challenges.”[3]

Why has this been put into place?

According to Finance for Tomorrow:Financing sustainable development is a huge, exciting and complex challenge. This challenge is characterised above all by its urgency, embodied by the adoption of the Paris Agreement and the UN’s Sustainable Development Goals in 2015. The launch of the Green and Sustainable Finance Initiative by the Paris financial marketplace aims to respond to this need for rapid, massive mobilisation of the financial sector, in line with the commitments and actions initiated by the public authorities.”[4]

What are the main work streams/areas of work?

Finance for Tomorrow focuses on the following objectives:

  • – DIFFERENTIATE THE PLACE OF PARIS: The quality of its products  and its expertise in  green and sustainable finance;
  • – REINFORCE THE SYNERGIES: And public-private co-construction, which is the source of the French ecosystem dynamism in Green and sustainable finance;
  • – ORGANIZE THE EUROPEAN AND INTERNATIONAL REACH of Paris as a green and sustainable financial center

As of October 2018, Finance for Tomorrow has 9 working groups in which members participate:

  • – Policy
  • – Communication & promotion
  • – Research group
  • – Education & training
  • – FinTech for Green
  • – New Financial tools
  • – Climate risks
  • – Sustainable, green & social bonds
  • – Financial impact & natural capital

What are  outcomes of the Initiative linked with the 5 Principles ?

One of the principal outcomes to date is the annual organization of the “Climate Finance Day” since 2015. This event has become part of the international climate finance calendar and a platform for the financial sector to demonstrate progress and make new commitments.

Have intermediate or final reports / guidance been issued?

The Paris Green and Sustainable Finance Initiative, 2016 – Based on interviews, this introductory report aims to evaluate the general and international context of the Paris financial marketplace’s actions, the Paris financial marketplace’s strengths to meet these new financing needs and the identified working axes to fully develop these advantages, seize opportunities, and anticipate risks. It concludes by presenting 15 proposals for the Initiative, structured into three areas of work:

  1. Allowing the Paris financial marketplace to stand out through the quality of its products and its expertise in green and sustainable finance;
  2. Strengthening synergies and public/private joint construction, sources of the French green and sustainable finance ecosystem’s vitality;
  3. Organising the European and international standing of Paris as a green and sustainable financial marketplace.

 Calendar and milestones

 

Associated Supporting institutions of the Climate Action in Financial Institutions Initiative:

1] financefortomorrow.com/en/

[2] financefortomorrow.com/wp-content/uploads/2017/06/the_report.pdf

[3] financefortomorrow.com/en/

[4] financefortomorrow.com/wp-content/uploads/2017/06/the_report.pdf

 

Links with the 5 Voluntary Principles for Mainstreaming Climate Action

This section aims to support discussions on the implementation of the 5 voluntary Principles for Mainstreaming Climate Action. Information provided in this section is for reference only; the Climate Action in Financial Institutions Initiative, its Supporting Institutions and the Secretariat do not endorse the activities nor the guidance and information provided in this section.

In the report, The Paris Green and Sustainable Finance Initiative, Finance for Tomorrow states that “to direct the right information and the right signals to financial players and facilitate the direction of capital towards green and sustainable finance, standardisation is essential on three levels:

  1. The definition of “green” or “sustainable”, through taxonomies such as those established by the Climate Bonds Initiatives, or initiatives to award labels to assets for which the earmarking of investments is desirable;
  2. The standardisation of processes to guarantee the environmental (and social) quality of financing products, with, for example, the standardisation of “use of proceeds” for green bonds;

iii. The disclosure of information, voluntary or through ESG reporting regulations, and the measurement of impact, through specific metrics, such as the carbon impact in the energy/climate field.”