Towards Orderly Green Transition – Investment Requirements and Managing Risks to Capital Flows

Flore-Anne Messy G20 Finance DD and Senior Counsellor, Directorate for Financial and Enterprise Affairs, OECD Flore-Anne Messy is Senior Counsellor in the OECD Directorate for Financial and Enterprise Affairs,G20/G7/APEC Finance DD and Secretary General of the International Organisation of Pension Supervisors (IOPS) She joined the OECD in June 2000 to develop the activities of the Insurance and Pr. [...] After several years working on the development of pensions, insurance and financial market policy issues, she launched and steered the OECD work on financial literacy and consumer protection (including the OECD/INFE, PISA financial literacy exercises, the G20/OECD Task Force on Financial Consumer Protection and the secretariat of FinCoNet). [...] THE IMPORTANCE OF USING PRECISE AND ROBUST GREEN METRICS When considering these aspects and the overall green transition, it is worth keeping in mind the disconnect between the high number of sustainable flows and actual “green” flows by private investors. [...] A report by the OECD (2023) to the IFA WG contributes to current efforts to understand the green finance landscape in EMs, and to existing works by other International Organisations (IOs) and players, using granular fund-level and asset-level data. [...] volatility, physical, transition risks) that should be considered in relation to these green capital flows? • How can the ESG ratings be harmonised/standardised across rating agencies, and be made to reflect the actual environmental impact of the investments? • How can some barriers be lifted, for example, in the area of data provision and measurement and ESG ratings, and which could make EMs more.