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 Program developed a new platform capable of enabling grantmakers to support 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. INSPIRE has been designated a global research stakeholder of the NGFS, and commissions new research with input and exchange from the NGFS’s Secretariat, its three workstreams, and its members. INSPIRE also seeks to communicate the results widely and convene researchers, policymakers and practitioners. INSPIRE is hosted by ClimateWorks and the Grantham Research Institute at the London School of Economics, and commissions research guided by an Advisory Committee with domain expertise and close interface with the NGFS’s three workstreams. INSPIRE was established by ClimateWorks together with support from the Children’s Investment Fund Foundation.
In 2019, INSPIRE issued two comprehensive calls for proposals responding to the broad range of research topics identified by the NGFS work streams. A description of awarded research projects can be found here.
Details on the submission process and other frequently asked questions can be found here.