6 Finance

Milestones, outcomes, strategies
Milestones Finance symbol
INVESTMENT IN CLIMATE ACTION IS BEYOND USD $1 TRILLION PER YEAR AND ALL FINANCIAL INSTITUTIONS HAVE A DISCLOSED TRANSITION STRATEGY.
Outcomes
  1. Invest at least $200 billion public and $800 billion private resources in climate action each year.
  2. Increase the amount of philanthropic funding for the climate movement by ten-fold from 2016 levels.
  3. Multiply the green bond market’s annual issuance by ten-fold from 2016 levels.
  4. Ensure that institutions disclose climate-related financial risks and that credit ratings fully incorporate them.
  5. Eliminate fossil fuel subsidies.
  6. Cancel the capital expenditure for expanding coal.
  7. Implement a carbon pricing mechanism within and across all major economies.
Strategies
  1. Sub-national governments have direct access to international finance and are able to fund climate-investments through low-cost capital.
  2. Development banks (national, bilateral and multilateral) have mainstreamed climate finance in their core-strategies, and all of their new and existing investments are compatible with a 1.5C scenario.
  3. Risk-reduction mechanisms for zero-emission investments are significantly scaled up, and consequently the cost of capital for investment in climate action in emerging economies is lowered.
  4. Impact investors prove instrumental to anchor higher-yielding zero emissions projects.
  5. Institutional investors understand the urgency of climate action and embrace their role in transitioning to a Paris-compliant financial system by aligning their investment portfolios.