Banking on a Better Climate

Leading financial institutions are now financing the green economy transition by moving beyond simple divestment toward active capital deployment in high-impact climate projects. This shift marks a critical evolution where banks and corporate clients collaborate to ensure that sustainability is integrated into the core of every lending decision. When financing the green economy transition, the focus must remain on creating scalable frameworks that support both mitigation of climate risk and the building of long-term economic resilience. This panel discussion unpacks how these institutions are moving from theoretical commitments to practical, data-driven strategies that prove environmental responsibility and financial profitability are not mutually exclusive.

The conversation explores the technical mechanics of financing the green economy transition through innovative tools such as green bonds, sustainability-linked loans, and blended finance models. These instruments allow for a more nuanced approach to risk-sharing, particularly in emerging sectors that require significant upfront investment to reach commercial viability. Experts in the session explain that financing the green economy transition effectively requires a deep understanding of policy shifts and the alignment of public-private partnerships. By examining the current barriers to capital flow, the participants highlight how standardized reporting and clear policy signals can accelerate the speed at which global markets pivot toward sustainable outcomes. Financing the green economy transition is a complex undertaking, but it remains the most vital mechanism for achieving a net-zero future while securing competitive market returns for stakeholders across the financial spectrum.

• The application of blended finance models to de-risk large-scale climate adaptation and infrastructure projects.
• Strategic ways for banks to support corporate clients through the transition with sustainability-linked lending.
• The role of clear policy frameworks and international standards in mobilizing private capital for green initiatives.

View the full panel discussion to learn how financial leaders are deploying new capital structures to drive meaningful climate action.