Sustainable Finance

We strive to mobilize adequate, affordable finance for the energy transition and Sustainable Development Goals. By engaging with public and private institutions, we critically analyze financing pathways, address barriers to scaling sustainable finance, and support innovative financing solutions and approaches at the local, national, regional, and international levels.

CCSI and the Sabin Center for Climate Change Law established the Climate Law and Finance Initiative (CLFI) to drive transdisciplinary research and engagement that advances global understanding of the role of the interrelated areas of law, policy, and finance in addressing the climate crisis. CLFI supports stakeholders by addressing legal and structural barriers, strengthening regulation for finance and markets, refining metrics and methodologies, and accounting for climate risk and resilience. We shape CLFI’s priorities to translate into lower GHG emissions in the real economy. Centered at the Law School and Climate School at Columbia University, CLFI draws on expertise and convening power from across the University. Learn more at climatelawandfinance.org.

Financing the Energy Transition

Recognizing that financial institutions must play a critical role in decarbonizing the economy and scaling access to clean, affordable energy, CCSI published Finance for Zero: Redefining Financial-Sector Action to Achieve Global Climate Goals to increase clarity and articulate what the financial sector can and should do even in the absence of a robust long-term public policy framework.

CCSI has identified unique opportunities and shared challenges in addressing climate finance gaps and advancing regional energy strategies across four key regions in Financing Pathways for the Energy Transition: A Regional Approach.

CCSI published two papers and an expert interview series on investment in renewable energy in developing countries to outline the roadblocks and drivers of investment in renewable energy in developing countries and provide actionable recommendations to ensure access to affordable, reliable, sustainable, and modern energy for all.

CCSI is assessing the viability of sustainability-linked sovereign bonds to provide a more sustainable form of financing for lower income countries, and will consider aspects of their design that could make them more effective in increasing access to finance for SDG- and climate-aligned investment in particular. Stay tuned for more information.

In collaboration with the SDG Impact Finance Initiative and Route 17, CCSI is looking at the role blended finance can play in reducing barriers to scaling sustainable finance in emerging and developing economies, particularly by addressing investors' perception of risk and liquidity constraints.

CCSI published Development Banking in the Global Economy: State of Play and Future Direction in 2021 to bridge the knowledge gap concerning national development banks as financial institutions.

Regulation for Finance and Markets

CLFI examined the laws, regulations, and contracts governing the allocation of liability during the decommissioning process of offshore oil and gas infrastructure in various countries, to help governments avoid having to foot the bill for private costs.

By selling fossil fuel assets, companies can claim progress towards net zero goals even if this does not translate into lower emissions in the real economy. Sales by supermajors can also transfer assets to smaller and less publicly accountable entities. CLFI recommends policies to address known limitations on these “transferred emissions.”

The recent politically driven manipulation of antitrust law and policy has had chilling effects on the engagement and mobilization of private actors to address climate and other sustainability-related challenges. CLFI is working to bring clarity to the intersection of antitrust and sustainability.

In recent years, significant attention has been paid to systemic risks posed by climate change and biodiversity loss to the financial sector, and how those risks interact with institutional investors' fiduciary duty. CCSI’s report In the Line of Duty? Institutional Investors' Responsibilities Regarding Systemic Risks authored by Fiona Stewart from the World Bank and Harald Walkate of Route 17 addresses this issue. It examines whether institutional investors are allowed, or even required, to engage in systemic risk mitigation interventions with the prevailing definition of fiduciary duty, and what can be done to further encourage and support universal owners in addressing the systemic risk of climate and nature loss.

Methodologies and Metrics

CCSI has published on the emissions accounting practices for low-carbon steel and aluminum brands, the role of public procurement in decarbonizing steel and aluminum production, and the additionality of GHG reductions associated with market mechanisms. Find these and other resources here.

CCSI engaged with two investment firms to assess and strengthen methodologies to define climate-advancing impact in venture capital and capital markets