12th OECD Forum on Green Finance and Investment 2025
Climate Reform Milestones
Domestic Carbon Markets
Carbon Markets
Roadmaps and session themes highlighted carbon markets in the context of net-zero supply chains and green materials certification, encouraging domestic markets to ensure high-integrity credits that corporates can use consistently across jurisdictions.
Monetary Policy, Financial Regulation, and Supervision
Private Finance
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Highlighted the need for central banks to incorporate climate-related capital factors into its operations and risk assessments, integrate climate risks into collateral frameworks, and account for the inflationary effects of physical climate risks in monetary policy frameworks.
Taxonomies, Standardization, and Disclosure
Private Finance
1. Highlighted the need of comprehensive transition taxonomies and standards for emissions accounting and AI efficiency.
2. Stressed the need for more credible, accessible, and comparable data on public and private biodiversity finance, noting that greater transparency can guide biodiversity-positive investments.
Mitigating Currency Risk
Private Finance
1.Emphasized the importance of distinguishing and grouping countries based on their specific challenges and using localized tools such as local-currency financing to support sustainable domestic capital markets.
2. Highlighted the need of addressing foreign-exchange (FX) risk as a key enabler for mobilizing private finance for climate action in EMDEs.
Shifting Insurance Models
Private Finance
Highlighted insurance as a critical tool for climate risk management, while noting challenges around affordability and alignment with the long-term nature of real estate investment. The discussion also emphasised improving data quality, developing forward-looking metrics, strengthening regulatory coordination and public–private collaboration to close insurance protection gaps, enable accurate risk pricing and support adaptation in real estate.
Mobilizing Private Adaptation Investment
Private Finance
Biodiversity and adaptation finance featured prominently in the discussion with calls for
a.Use of simple language focused on prevention and recovery, relevant impact metrics and measure to balance risk and return and help position adaptation as an opportunity rather than as a compliance risk.
b. Need for a supportive ecosystem for innovation that combines technical support and capacity-building with suitable financing for scaling investments in adaptation.
Project Preparation and Business Development Facilities
Private Finance
Discussions highlighted the need for scaling pipeline of bankable projects and the critical role of MDBs in building quality pipeline.
Transition Finance
Private Finance
Transition finance featured prominently in the discussions with calls for a stronger focus on credible transition plans and comprehensive transition taxonomies. Discussions also put the spotlight on 'digital transitions' as a necessary corollary of energy transitions.
Guarantees
Private Finance
Discussions highlighted the need of harmonized interpretations of guarantee eligibility, risk weights and clear regulatory framework for treatment of guarantees
Fiscal reforms and regulations
Domestic Mobilization
Showed progress in climate budget tagging and transparency frameworks, helping governments align fiscal spending with climate goals.
Domestic Financial Market Development
Domestic Mobilization
OECD continues to track the USD 100 billion climate finance goal, noting that domestic savings are underutilized in EMDEs.
Country Platforms
Country-led Initiatives
Discussions emphasized country platforms as vehicles to scale green investment by coordinating public policy, development finance, and private capital. Participants highlighted their role in replicating pilot projects, managing risk, and enabling country-driven decarbonization strategies.
12th OECD Forum on Green Finance and Investment 2025 | Climate Finance Reform Compass