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Enhancing Market Transparency in Green and Transition Finance

This report leverages the experiences of NGFS members and observers to shed light on the state of play and key challenges surrounding market transparency issues.

Key points

The report sets out some key considerations relevant to policymakers:

  • Enhance market transparency about issuers’ and investors’ green and transition objectives. Taxonomies and climate transition frameworks are most effective when they are tied to clear objectives and science-based net zero targets.
  • Facilitate comparability and interoperability of taxonomies, frameworks, and principles. A common understanding of criteria, targets and methodologies is critical to avoid divergences in assessments in green external reviews.
  • Accelerate efforts on disclosure and reporting. Enhanced disclosure and reporting, based on global disclosure standards with industry-specific metrics, will form the basis for consistent, comparable and reliable climate data, transition plans and investment products.