This year will be key for future climate policy and especially for sustainable finance in Germany and Europe. Sustainable Finance plays a crucial role in improving climate protection and sustainable growth. To this end, Germanwatch joined forces with the Alliance for Corporate Transparency in order to push towards greater corporate responsibility and disclosure requirements to meet the EU and Paris climate targets. This is the third article of our briefing series "Full Disclosure: Monthly Briefing on EU Corporate Transparency Regulation", in which we aim to shed light on the need for and benefits of forward-looking reporting requirements in a changing EU regulatory environment
In the upcoming week, the 13th meeting of the WIM ExCom will take place (April 27-30 2021). One very important issue to discuss will be – among other issues – the work of the Expert Groups as they play a major role in carrying out the activities of the ExComs workplan. Especially the work on Action and Support, Slow-onset Events and Non-economic Losses will be discussed and concrete steps for developing the respective workplans with concrete activities will have to be decided upon. The meeting will take place in a virtual format and even over one year in the COVID-19-pandemic this setting still poses some substantive challenges to the discussions and inclusiveness as well the involvement of observers.
The COVID-19 pandemic has advanced into the biggest global health crisis in recent human history and exacerbated existing challenges for developing countries. Nonetheless, poorer nations are still showing remarkable commitment to dealing with the climate crisis. As the pandemic continues, developing countries are increasingly reaching their limits. Additional international climate finance post-2020 is needed to respond to the climate, health, and debt crises, after developed countries already failed to deliver on the USD 100 billion. At the upcoming US Climate Leaders Summit and the Petersberg Climate Dialogue, developed countries need to step up their game on international climate finance. The blog presents clear asks for Germany!
On 21 April 2021, the European Commission published its proposal for a new EU Corporate Sustainable Reporting Directive (CSRD). In a joint public statement, Germanwatch and other NGOs associated with the Alliance for Corporate Transparency welcome many aspects of the proposal, including the development of mandatory sector-specific EU sustainability reporting standards.
Development banks not only provide finance directly to specific projects, they also channel funds to financial intermediaries in developing and emerging economies. Development banks have committed to align themselves with the Paris Agreement. While they have made (some) progress with establishing Paris lending criteria for their direct lending activities – clear rules and guidance for how to align “intermediated lending” with the Paris Agreement remains a gap. This Blog provides a rational for Paris alignment of MDBs’ intermediated lending and proposes a phased approach that development finance institutions can follow to fulfil their commitments.
For a year and a half, representatives from the real economy, the financial sector, academia and civil society fought hard to reach an agreement on how Germany could become a prime hub for sustainable finance . On February 25, the final report of the German government's Sustainable Finance Advisory Council (SFB) was published, with ambitious recommendations on how to make the financial market more sustainable: Shifting the Trillions - A Sustainable Financial System to facilitate the Great Transformation. It is now the government's turn to translate the recommendations into an effective strategy and initiate the first legislative changes before the end of this legislative term.
In order for the socio-ecological transformation to succeed, actors from civil society, politics, the private sector and academia must work together at an eye level to develop common goals and cooperate to achieve them. This is where the concept of multi-actor partnership (MAP) comes in: Based on the assumption that committed cooperation leads to viable solutions, multi-actor partnerships must take into account and take seriously the complex interests of the actors involved and affected. Thus, they are much more than just a consultation round of different partners. The analysis and the recommendations derived from it are based on the experience gained by local partners in tandem with Germanwatch in seven MAPs in the field of climate, energy and just transformation in different country contexts.