The Next Global Financial Crisis and Climate Change: A Policy Agenda to Align with the Paris Agreement
Claire Healy, Director, Climate Diplomacy, Risk and Security Programme, E3G Third Generation Environmentalism
George Triggs, Policy Advisor, Sustainable Finance, E3G Third Generation Environmentalism
This roundtable examines the complex relationship between the financial system and the threat of climate change and identifies which aspects of the regulatory and economic framework must change to deliver a climate-safe world. Despite the growing recognition of climate-related physical, transition, and liability risks, there has not yet been a material change in market attitudes or investor behavior that corresponds with addressing those risks. A paradigm shift is required to change market rules and sentiment and reform regulatory and economic frameworks so they align with the scale of the climate challenge.
Crises are moments when radical change is possible. The global financial crisis of 2008 propelled a rapid period of reform in the financial sector that led to a new suite of banking regulations and consumer norms. It is difficult to predict what will trigger the next financial crisis or when it will present; however, a credible set of transformational reforms and an influencing plan can be developed now to shift the global economy onto a more sustainable course at such a critical juncture.
Participants include the climate community as well as representatives from treasuries, national banks, financial regulators, and government executive offices in North America, Asia, and Europe. Roundtable objectives include creating a baseline in order to collate, categorize, and prioritize a final reform package that is coherent, transformational, and deliverable; and exploring the most salient narrative and influencing plan to mobilize broad coalitions and key influencers with access to the likely chief architects of any response.