Mapping reporting initiatives and understanding implementation challenges

2017 - 2018 Work Streams WS2 - Mapping Reporting Initiatives and understanding implementation challenges

Context and Existing Work

Article 2.1c of the Paris Agreement calls for financial institutions to ensure compatibility of financial flows with the well-below 2°C objective.  Methodologies and tools to track and record financial flows are needed to ensure a pathway towards this goal.

The last five years have seen the development of a broad range of reporting initiatives comprising methodologies and tools to classify, track and report climate investments.

Objective

This work stream will identify and examine the most commonly used reporting initiatives related to climate investments, including methodologies to track and report:

Climate finance flows, comprising mitigation and adaptation finance;

The impact of climate investments, primarily associated greenhouse gas emissions and

The nature of green bonds proceeds and their expected environmental impact.

Work on these three specific topics could lead to “quick wins” for the initiative, with possible concrete results in terms of increased harmonization of approaches between financial institutions before the end of 2016.

This area of work could be later expanded to additional topics like the assessment of public and private resource leverage on climate investments, the accounting of financial contributions to the implementation of Nationally-Determined Contributions, the assessment of the performance and impact of adaptation finance activities, and the accounting for intangible or qualitative impacts of climate finance (e.g. catalytic, scaling up or transformational effects).

This will be valuable because it will show Supporting Institutions the range and characteristics of different reporting initiatives and the benefits of joining initiatives. It will also demonstrate to Supporting Institutions the requirements and challenges for reporting under different initiatives.  Experience will be shared about how institutions have joined initiatives and adopted different reporting methodologies. This will be an opportunity for interested Supporting Institutions to network and share experience about issues related to tracking and reporting climate investments related information.

Many Supporting Institutions are already participating in reporting initiatives or have developed their own approaches, much of this discussion has remained between public institutions. This workstream will thus focus on sharing practice between institutions, but also draw out the relevant experience and questions for those private-sector financial institutions taking steps to track and report on climate-related investment and financial flows.

USEFUL RESOURCES

Relevant Publications

Relevant Cases Studies

Discover the 3 other Work Streams

4 Work Streams have been identified as being of relevance to the initiative and its activities in the coming months

 
Climate Risks : Approaches, Tools, Methodologies
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City-level climate smart approaches and financial instruments
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Spreading a climate strategy into a whole organisation
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