An important dimension of international and national climate governance is the financial sector. Climate finance refers to the role of financial institutions in addressing climate change, such as through investment transactions, identifying financial risks and supporting clean and green energy developments. Global financial markets have become a significant driver of environmental pressure, but also potentially a means of leveraging positive change. The latter role is expressed through the growing movement for socially responsible investing (sri). This article examines how the financial industry affects action on climate change, the role of the sri movement in improving environmental behaviour, and the place of state-based regulation in creating a more conducive "marketscape" for climate finance.
- Socially responsible investment