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Shifting private finance towards climate-friendly investments

The objective of this report from the Financing the Future consortium is to provide European Union (EU) policymakers with an actionable toolbox for how they can contribute to mobilising private finance for climate-friendly investments.

Key points

It maps the existing demand from institutional investors for climatefriendly investments and sets out the potential channels of fixed income and equities have to provide a range of complementary options for where the supply of financially competitive climate investment flow can occur, including amongst others, green bonds.

The study looked at the barriers to the use of those supply channels; and the policies, tools and instruments policymakers have at their disposal to address these barriers. It identifies two main types of barriers related to climate-friendly investments: those external to institutional investors’ decision-making framework and barriers arising from that framework.

An action plan is developed, providing EU policymakers with recommendations to address these barriers and mobilise institutional investors for climate investments, both in the EU and globally.