Financial markets will be needed to channel private funding in a volume of several trillion dollars to finance the transition to a zero carbon economy in the coming years. Climate change and the transition causes existential threats to the financial system. Financial institutions and investors as well as regulators need to ensure appropriate risk management and disclosure. Governments and legislators decide on sustainable infrastructure financed by green bonds and define policy frameworks to incentivize private activity and avoid misallocation.
The new Climate Counselor John Morton of the U.S. Department of the Treasury will be in a dialogue with Jörg Kukies, Deputy Minister of the German Ministry of Finance on the topic of International Cooperation on Green Finance. It will be one of the first public events Mr. Morton is appearing in his new function, so it will be exciting to hear how he defines his and the Treasury’s role on the topic. Mr Kukies will present the German Sustainable Finance Strategy recently adopted by the German government as well as ongoing developments in the European Union and in international fora. Together they will discuss ongoing efforts and prospects for international policy coordination in this area, bilaterally between the European Union and United States and at the multilateral level.
By Thomas Dohrn, German Embassy