Lifeguard Wanted: Tracking Article 2.1c & Transition Risks in Financial Markets

This briefing provides a roadmap for financial regulators and climate policymakers to supervise and monitor regulated entities’ capital misallocation relative to the Paris Agreement and potential financial risk associated with the transition to a low-carbon economy. The step-by-step game plan forms a basis of action that can be used and adapted by regulators to their country specific context around regulatory mandates on disclosure and others. The note forms the output of the discussion of an informal working group of financial supervisory authorities, Treasuries, and private sector actors, convened at the 2ii Corsica seminar in 2016.