This report studies the development of criteria for assessing the compatibility of financial investments with the international goal to limit global temperature increase to below 2°C above pre-industrial levels. The findings are intended as a starting point and a key input for a longer term process to develop consensus-based 2°C investing criteria. The focus here is placed on investments in projects and physical assets, in particular of development and climate finance organisations. In order to limit global temperature increase to 2°C, global greenhouse gas (GHG) emissions will have to be...

This study clarifies the definition of results-based financing (RBF) and in particular its role in the context of climate policy. The publication is aimed at readers from the carbon markets and climate finance communities alike. It facilitates a common understanding of what RBF as a financing modality involves and is therefore meant to also be a good starting point for readers looking into this topic for the first time. An overview of results-based finance options and opportunities for linking market and non-market approaches is provided. Combining carbon market and non-market climate finance...

The German government, through the German Federal Environment Agency, commissioned a consortium consisting of NewClimate Institute, Germanwatch, and the 2° Investing Initiative to explore criteria to measure the alignment of investment and financing with the 2°C limit. The project focuses in particular on development finance institutions. This report was prepared in the context of the G7 summit meeting. It maps existing 2°C relevant criteria used by financial institutions and discusses what 2°C criteria might look like for key investment areas.