Climate change mitigation scenarios for financial sector target setting and alignment assessment: A stocktake and analysis of their Paris-consistency, practicality and assumptions

Jolien Noels, Coline Pouille, Raphaël Jachnik and Marcia Rocha

No 223, OECD Environment Working Papers from OECD Publishing

Abstract: Climate change mitigation scenarios are a key forward-looking input for a range of financial sector analyses and assessments. The inaccurate use of mitigation scenarios can, however, contribute to unintended incentives, environmental integrity concerns, and greenwashing risks. This paper aims to inform climate change mitigation scenario providers, financial sector participants and stakeholders, and climate policymakers on how they may contribute to improved use of scenarios for the purposes of target setting and alignment assessments in the financial sector. To do so, the paper analyses climate change mitigation scenarios currently used for these purposes, based on the following analytical dimensions: consistency with the Paris Agreement, practicality, and underlying assumptions.

Keywords: climate alignment assessments; Climate change mitigation scenarios; finance; greenhouse gas emissions; investment; net zero target setting (search for similar items in EconPapers)
JEL-codes: G23 G24 Q54 Q56 (search for similar items in EconPapers)
Date: 2023-09-28
New Economics Papers: this item is included in nep-ene and nep-env
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Persistent link: https://EconPapers.repec.org/RePEc:oec:envaaa:223-en

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