The role of green finance in the net-zero transition

Greening the finance sector requires regulation and rules that effectively incorporate net zero transition considerations into financial decision-making so that climate risks can be accurately priced according to their material impacts on financial institutions.

Nicole Yazbek-Martin, Head of Taxonomy and Natural Capital at the Australian Sustainable Finance Institute (ASFI), says that sustainable finance ensures that finance systems integrate net zero transition considerations into decision-making, as well as shifting capital so that more money flows to future net-zero aligned climate solutions.

“Sustainable finance requires robust, consistent, quality, transparent and verifiable information and data from financial institutions’ clients and assets to enable financial institutions to adjust their capital allocation away from high-risk activities toward new opportunities,” Nicole says.

“To fully achieve these outcomes, it is essential that real economic policies are in place to incentivise this shift,” she says.

Nicole Yazbek-Martin will present “The Role of Sustainable Finance to Guide Capital to Net-Zero Transition Solutions” at the 2024 HiTeMP-4 Forum, being held from Oct 21-23, at the National Wine Centre Adelaide.

The HiTeMP-4 Forum is brought to you by the Centre for Energy Technology and the Institute for Sustainability, Energy and Resources at the University of Adelaide, the HILT CRC and the Net-Zero Industries Mission. Register today, to attend this important meeting.