Launch of the [tra:ce] Working Paper Series No. 5

One of the key principles of the Paris Climate Agreement is to reconcile financial flows with a net zero economy. This working paper examines how the EU has sought to integrate this objective into banking regulation.
 

It shows that two important discourses competed in the policy process: one focussed on climate as a financial risk, the other on credit governance, where political considerations take precedence over risk concerns. Credit steering would mean lending to sustainable sectors that are currently considered unprofitable or too risky, or withdrawing finance from highly polluting sectors. Although various attempts have been made to introduce such an element of credit control, risk concerns have dominated the policy debate.

Paper No. 5 argues that while this risk narrative has been central to bridging political differences, it significantly limits the EU's ability to push through the financing of a green transition.

The authors of the paper will discuss their findings with Julia Symon from Finance Watch.

The event will be held in English. Participation is free of charge.

You can register here.