Decision Metrics and Finance 2017 Priorities Announcement

The global climate challenge  

The Paris Agreement has united the globe in its fight against global climate change, setting ambitious targets for us all. While it is clear that many solutions already exist, there still remains a big challenge: how to scale up innovative solutions quickly enough to a level consistent with the targets set. Even current targets and promising dynamics may not be sufficient to stay on track – this is exemplified by the fact that in 2018, countries will examine whether and how to tighten targets. In order to mobilise the required finance, it is estimated that $93 trillion will have to be spent on building low-emission and climate-resilient infrastructure globally in the next 15 years.  

Increasing awareness in financial markets and policy 

International climate policy is not the only forum that has woken up to the need for action, monitoring and risk management. It is increasingly recognized that the private sector is exposed to significant climate change risks and opportunities. The G20’s Financial Stability Board concluded in 2015 that, without effective disclosure of these risks, the financial impacts of climate change may not be correctly priced – and as the costs eventually become clearer, the potential for rapid adjustments could have destabilising effects on markets. This has prompted the creation of a Taskforce on Climate-Related Financial Disclosure (TCDF), convening 30 high-level private sector experts, who have issued their recommendations. The aim is that climate-related financial issues are routinely considered in business and investment decisions and encourage an effective dialogue between companies and banks, insurers and investors. That will lead to smarter, more efficient allocation of capital, and speed the transition to a climate-friendly, low-carbon economy.  

Similarly, the European Commission has put in place a High-Level Expert Group on sustainable finance, comprising 20 policy leaders from civil society, the finance sector and academia. The objective is that the Expert Group provides, by the end of 2017, recommendations for a comprehensive EU strategy on sustainable finance as part of the Capital Markets Union.  

What needs to be done to increase the momentum 

While the above developments are very promising because they set the right ambition level and provide broad frameworks, a lot still needs to be done to put this into practice.  This includes systemic changes to redirect financial flows; a much improved approach to understanding, managing, and pre-empting the physical risks of climate change; and a focus on actually creating the projects, assets and investment vehicles that allow investors to move from divestment to green reinvestment. While policy and standards play a crucial role, there is a great need for the development of innovative products and services that actually enable the private sector to take action on the required scale.  

How Decision Metrics and Finance addresses the climate challenge 

Together with partners, Climate-KIC’s DMF theme aims at developing innovative climate metrics, climate finance, and decision-making mechanisms to enable the scaling of climate-friendly innovation. For 2017 DMF priorities the following five topics: 

  1. Transforming financial markets and accounting standards

  2. Developing a global market for climate risk information

  3. Unlocking climate finance for cities  

  4. Mobilising finance for sustainable land use

  5. Informing and educating decision-makers on climate finance (cross-cutting priority)

For further information on the five priority areas please refer to the Decision Metrics and Finance 2017 priorities in the Climate-KIC Thematic Priorities document

 
Location
Articles you may be interested in
Opinion
Adapting to climate change in Europe: Building a systemic and urgent vision
Susannah Fisher, EIT Climate-KIC and Andrew Norton, IIED
Adapting to climate change in Europe: Building a systemic and urgent vision
In our community
Interview with Andrzej Wiszniewski, President of the Board, National Energy ...
Interview with Andrzej Wiszniewski, President of the Board, National Energy Conservation Agency Poland
In The News
FEED-X programme aims to transform global feed industry

Supported by EIT Climate-KIC, global feed supplier Skretting, WWF...

FEED-X programme aims to transform global feed industry
In The News
New reports say net-zero emission EU heavy industry by 2050 is achievable

Achieving net-zero emissions by 2050 for European energy-intensive industries...

New reports say net-zero emission EU heavy industry by 2050 is achievable
In The News
Five EIT Climate-KIC startups announced as Cleantech Innovate finalists

Five EIT Climate-KIC supported startups are among the 30...

Five EIT Climate-KIC startups announced as Cleantech Innovate finalists
In The News
Drawdown book: Global warming is reversible

Climate protection initiative gives a preview of the German...

Drawdown book: Global warming is reversible
In The News
International effort launched to determine best CO2 capture & utilisation ...

Economic and environmental guidelines will support new industries and...

International effort launched to determine best CO2 capture & utilisation technologies
In Detail
New report cements wood as the future of construction

In a new report, 25 examples of using wood in construction showcase that reducing the carbon footprint of our buildings is not only possible,...

New report cements wood as the future of construction
In The News
Transatlantic bridge for European innovation: EIT Community opens its first Hu...

The European Institute of Innovation and Technology (EIT) opened...

Transatlantic bridge for European innovation: EIT Community opens its first Hub in Silicon Valley
In The News
EIT Climate-KIC supported Beyond Ratings registered as credit rating agency by...

EIT Climate-KIC supported firm Beyond Ratings, a financial services...

EIT Climate-KIC supported Beyond Ratings registered as credit rating agency by European Securities and Markets Authority
In our community
Interview with Nico Wolf, CFO, Endless Energy – Winner of the EIT Climate-...
Interview with Nico Wolf, CFO, Endless Energy – Winner of the EIT Climate-KIC Finance Incubator Competition
In The News
EIT Climate-KIC supported Ombrea raises €1 million to commercialise its smar...

EIT Climate-KIC supported start-up Ombrea, which offers a tool...

EIT Climate-KIC supported Ombrea raises €1 million to commercialise its smart agriculture system
In The News
EIT Climate-KIC announces partnership with Silicon Valley innovation hub

EIT Climate-KIC has announced its partnership with cleantech innovation...

EIT Climate-KIC announces partnership with Silicon Valley innovation hub
In The News
Eight EIT Climate-KIC innovators in prestigious Forbes 30 Under 30 Europe List...

In the last four years, the EIT Community has...

Eight EIT Climate-KIC innovators in prestigious Forbes 30 Under 30 Europe List 2019
In The News
Bill Gates lists EIT Climate-KIC’s Climeworks on 2019 Breakthrough Techn...

Bill Gates was invited to be the first guest...

Bill Gates lists EIT Climate-KIC’s Climeworks on 2019 Breakthrough Technologies list
Innovation Spotlight
AI and robotics could revolutionise municipal waste sorting

Ferrovial, a leading infrastructure operators and municipal services company, and EIT Climate-KIC partner, is collaborating with start-up...

AI and robotics could revolutionise municipal waste sorting
In Detail
Accelerating the transition to a circular economy

A new report, “Accelerating the transition to a circular economy: Improving access to finance for circular economy projects,” provides key recommendations to drive increased...

Accelerating the transition to a circular economy
In The News
EIT Climate-KIC launches ‘Call to Action’

This week, EIT Climate-KIC launched its call for proposals....

EIT Climate-KIC launches ‘Call to Action’
In The News
EIT Climate-KIC supported Ÿnsect raises €110 million, becoming global leade...

Ÿnsect announced yesterday that it has raised €110 million...

EIT Climate-KIC supported Ÿnsect raises €110 million, becoming global leader in alternative protein
Opinion
Policy: The circular designer’s secret weapon
Joe Iles & Simon Widmer Circulate News & The Circular Design Guide
Policy: The circular designer’s secret weapon
In The News
EIT Climate-KIC supported Climetrics announces top ten European equity funds f...

Climetrics, the world’s first and only independent climate rating...

EIT Climate-KIC supported Climetrics announces top ten European equity funds for climate performance
In The News
EIT Climate-KIC supported WINnERS secures over €1.5 million in funding

WINnERS, an agricultural supply chain de-risking service supported by...

EIT Climate-KIC supported WINnERS secures over €1.5 million in funding
In our community
Interview with Marian-Constantin Vasile, Trainer, EIT Climate-KIC
Interview with Marian-Constantin Vasile, Trainer, EIT Climate-KIC
In our community
Interview with Piotr Magnuszewski, Programme Leader, Centre for Systems Solu...
Travis Hendrix tbd
Interview with Piotr Magnuszewski, Programme Leader, Centre for Systems Solutions
Opinion
How the climate community breeds its own inaction
Dominic Hofstetter EIT Climate-KIC
How the climate community breeds its own inaction
Innovation Spotlight
Not your ordinary reusable bag: Plant trees & earn discounts while you s...

Remember a time when you’d carry your purchases home in a plastic bag? Neither can we. That’s...

Not your ordinary reusable bag: Plant trees & earn discounts while you shop with goodbag
In our community
Interview with Mike Asquith, Project Manager – Integrated Environmental As...
Interview with Mike Asquith, Project Manager – Integrated Environmental Assessment, European Environmental Agency
In The News
EIT Climate-KIC launches strategy for 2019-2022

EIT Climate-KIC, innovation community established and funded by the...

EIT Climate-KIC launches strategy for 2019-2022
Opinion
A systemic approach to innovation in land use and nature-based solutions
Daniel Zimmer Director Sustainable Land Use at EIT Climate-KIC
A systemic approach to innovation in land use and nature-based solutions
Opinion
How moderation could accelerate climate action
Dominic Hofstetter EIT Climate-KIC
How moderation could accelerate climate action