UNEP FI, CBI, and PRI Team Up to Boost Global Sustainable Finance Taxonomies
The United Nations Environment Programme Finance Initiative (UNEP FI) has joined forces with the Climate Bonds Initiative (CBI) and the Principles for Responsible Investment (PRI) to boost global interoperability and implementation of sustainable finance taxonomies. This collaboration, announced in June 2024, brings together three major players in sustainable finance, each with extensive experience in various economies.
The collaboration will result in the creation of a taxonomy resource centre. This centre will provide support tools for taxonomy developers and users, helping them integrate these frameworks into broader regulatory systems. It will also work with other stakeholders to scale up private finance for sustainable development.
The three organizations will focus on developing taxonomies that cover emissions reduction, climate resilience, and other environmental objectives. They aim to create tools that ensure interoperability and usability across various sustainable finance frameworks. Liesel van Ast, Deputy Head of UNEP FI, highlighted the importance of these taxonomies in promoting a common language for sustainable finance, particularly in the development of the Common Framework of Sustainable Finance Taxonomies for Latin America and the Caribbean.
Sean Kidney, CEO of Climate Bonds, described taxonomies as 'shopping lists' for investments in a sustainable future. The collaboration aims to build consensus on taxonomy definitions and concepts among standard setters, policymakers, and taxonomy users. It will also support the development of taxonomies and provide tools for their implementation.
Nathan Fabian, PRI's chief sustainable systems officer, emphasized the PRI's engagement with investors on the implementation and use of sustainable finance taxonomies, particularly the EU taxonomy. With the Asian Infrastructure Investment Bank (AIIB) also joining this effort, the collaboration is well-positioned to drive global interoperability and implementation of sustainable finance taxonomies.
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