Finance fit for Paris (3fP)-Tracker

Description of the Project

Green finance has been gaining increasing attention from different actors inside and outside financial markets, including civil society, regulators and governments across the EU. The 3fP-Tracker screened and assessed existing financial market regulation and policies on country level to evaluate where the national financial regulation stands against the imperative of the <2-degree target as anchored in the Paris Agreement.

The design of the 3fP is unique as it structures the regulatory analysis along the main economic dimensions of financial market regulation: Transparency and Stability, complemented by looking into public actions creating an enabling environment for green financial markets. As such, it provides an objective knowledge base for an assessment of the current regulatory framework against one that is “fit for purpose” of meeting the requirements of the Paris Agreement.

The design of the tracker construct was derived from the main economic objectives of financial market regulations which are stability and transparency. A third dimension reflects the relevance of public policy in creating an enabling environment. This structure has been discussed, refined and validated through conducting expert interviews and group discussions with regulators, financial market actors, civil society and scientific experts using the think aloud method.

Here you can find the last assessments (Nov 2020) as well as the methodological handbook and our list of indicators: