Paris Time Event — Sharm el-Sheikh, Egypt

IEA at COP27: Financing the clean energy transition

Background information

Egypt Time, GMT +2: 2:30 PM-4:00 PM

An increasing number of organisations have made climate and net zero announcements to align their financial flows and operations with the Paris Agreement and Sustainable Development Goals. This commitment will have impact on their overall strategy and for financial institutions their respective lending portfolios. While climate change is an important and key topic other development topics need to be combined with it, not least to reach net zero in a socially ‘just’ way. 

For financial institutions and corporates the key to reducing emissions and achieving net zero is to tackle their Scope 3 emissions, the emissions which are associated with their operations, supply chain, portfolios and loan books, and which for financial institutions, on average constitute 97 percent of financial institutions’ total emissions. As a result, to reach net zero emissions, financial institutions and corporates will need to effectively evaluate counterparty transition plans for credibility, real economy impacts, and potential portfolio impact, while simultaneously measuring portfolio emissions and creating their own just transition plans. 

This session aims to identify the role that financial institutions and other organisation can play in connecting action on climate change with inclusive development pathways. This builds on the commitment within the Paris Agreement on climate change to support a just transition for workers and communities. 

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