The report ‘Activating Alignment’ presents emerging lessons and technical suggestions to ensure interoperability among climate assessment methodologies.
The report ‘Activating Alignment’ presents emerging lessons for applying the G20 Voluntary Principles for Developing Alignment Approaches. The report has been prepared by staff from the International Organization members of G20 Sustainable Finance Working Group (IMF, World Bank Group, OECD – with input from BIS staff) and will be submitted as part of the annual update on the Sustainable Finance Roadmap. It presents lessons for designing and implementing tools which aim to monitor and ensure that global capital flows are contributing to climate mitigation and the temperature goals of the Paris Agreement. It provides a common foundation for ensuring all approaches are robust and consistent.
Emerging lessons for designing these sustainable finance tools include the need for:
- A robust, credible, and science-based grounding.
- Alignment approaches to be unified by the overarching goal of transitioning to similar real-world decarbonization outcomes.
- Striking the right balance between interoperability and local context and purpose – making sure that specificities and status of emerging markets and developing economies (EMDEs), small and medium enterprises (SMEs) and supply chains are accounted for.