Skip to content

Charting the Course to Climate-Aligned Finance

Five Barriers to Alignment and How a Sectoral Approach Can Help

By Tyeler Matsuo, Brian O’Hanlon, Lucy Kessler, and Sarah LaMonaca

Jump to Section

By the end of 2019, financial institutions representing $17.2 trillion had committed to align their investment portfolios with the decarbonization goals of the Paris Agreement. The scale of ambition is exciting, but the question remains: How can banks and other financial institutions meet these climate alignment objectives?

This brief offers key insights for financial institutions who are considering or are have already begun to align the emissions impacts of investment portfolios and activities with global decarbonization targets. The brief outlines five common barriers that institutions face when attempting to achieve climate alignment, and details how a sector-by-sector approach to alignment can provide an efficient, pragmatic, and effective way forward.

About the Authors

Tyeler Matsuo

Tyeler Matsuo

Principal
Brian O’Hanlon

Brian O’Hanlon

Managing Director

Lucy Kessler

Sarah LaMonaca

Help build the clean energy future. Donate today.

Independent research. Real-world solutions. Supported by donors.

RMI can pursue the highest-impact climate and energy solutions because we’re supported by people who believe change is possible. Every gift helps advance the work needed to make clean energy the default choice worldwide.

For other ways to give to RMI, including checks or gifts of stock, please visit Other Ways to Give.