Measuring Progress on Greening Financial Markets

In the context of the G20 Green Finance Study Group, one of the key questions focuses on the challenge of measuring progress around mobilizing capital for ‘green’ investments and shifting capital out of ‘brown’ investments.

This briefing note provides a state-of-the-art review on measuring progress on green finance, with a particular emphasis on ‘climate-friendly’ finance. This section briefly reviews what we know about ‘green’ finance across asset classes, with a particular emphasis on questions around high-carbon and low-carbon finance. The next section maps the current options for benchmarking climate finance, as one aspect of the green finance space, to public policy objectives. The note concludes with mapping options for actions for policymakers and international agencies, notably the G20.