Consistency of financial flows with the Paris Agreement objectives : the EU navigating the transition towards climate neutrality and resilience

Making finance flows consistent with a pathway towards low greenhouse gas emissions and climate-resilient development is one of the objectives of the Paris Agreement. Limiting global temperature rise and achieving resilience goals will not be possible without aligning finance, both in the real economy and in the financial system. This Staff Working Document provides an overview of the current international context, and the policies and measures already in place in the EU to make finance flows consistent with the Paris Agreement. In doing so, it demonstrates the EU's commitment to fully implementing the Paris Agreement. It highlights the challenges and opportunities faced by EU governments, businesses and financial institutions, and lays the foundation for a political reflection on how this critical effort could be further strengthened, both in the EU and globally.