The global ﬁnancial system needs to intensify its response to the severe risks posed by environmental damage (notably from climate change) as well as channel capital effectively to accelerate the transition to a low-carbon, resilient and sustainable model of development.
Awareness of climate and sustainability factors is on the rise in the ﬁnancial sector. Market actors are beginning to incorporate the implications of a changing climate and the transition to a low-carbon economy into their banking, insurance and investment decisions. Policymakers and ﬁnancial authorities have also begun to take action, and are crafting new approaches to understand and address climate change and other environmental threats.
In December 2017, eight leading central banks and supervisors announced they were assembling to form the Network for Greening the Financial System (NGFS). Since then, the NGFS has grown to more than 30 members and observers from Africa, Asia, the Americas and Europe. The Network’s goal is “to help strengthen the global response required to meet the goals of the Paris Agreement and to enhance the role of the financial system to manage risks and to mobilize capital for green and low-carbon investments in the broader context of environmentally sustainable development”.
Innovative and robust research will be needed to enable the NGFS and its members to deliver this ambitious goal. To support this, the ClimateWorks Sustainable Finance Portfolio initiated the development of a new mechanism capable of responding to the agenda of the NGFS. The result is INSPIRE: an independent research network purpose-built to commission scholarship and insights from best-in-class scholars and analysts in all parts of the world on key research questions linked to the NGFS work program. As well as commissioning new research, INSPIRE will also seek to communicate the results widely and convene researchers, policymakers and practitioners.
INSPIRE is hosted by ClimateWorks in conjunction with collaborating funder partners and guided by an Advisory Committee with domain expertise and close interface with the NGFS’s three workstreams. These workstreams are focused on: (1) micro-prudential and supervisory issues; (2) macro-financial risks; and (3) scaling up green finance. The Advisory Committee is chaired by Professor Nick Robins and provides recommendations to ClimateWorks on research to commission
Please carefully review the initial set of priority research questions developed in line with the NGFS workstreams and a number of cross-cutting issues.
Details on the submission process and other frequently asked questions can be found here.
Click here to join the INSPIRE mailing list.
Grantham Research Institute, LSE
Central University of Finance and Economics
Council on Economic Policies
2-Degrees Investing Initiative