Green Finance

In recent years green finance has become a major topic of discussion among European legislators and financial market actors. The prevalence of this topic is attributable in no small part to the European Green Deal of 2019, which foresees extensive climate investment to fulfill the goals of the 2015 Paris agreement. According to the European Commission and national authorities, the financial sector has a key role to play in the green transformation of the economy and society. Specifically, as a supplement to fiscal policy action, the financial sector is being called upon to channel more capital toward climate resilience and sustainable development.

“Green finance” typically refers to investment measures that serve ecological and climate goals. Yet the term also encompasses regulatory measures that aim to ensure transparency, guide financial flows, support risk management, and prevent greenwashing. A key pillar of this regulatory framework is the EU taxonomy for sustainable activities, which defines criteria for measuring the environmental performance of economic activities. This “green taxonomy” aims to provide market actors with reliable standards for making ecological investment decisions. EU legislators have also established comprehensive disclosure obligations for financial institutions and companies. These obligations represent a second important pillar of the regulatory framework for green finance, because they ensure the disclosure of environmental performance information. Such information is a crucial enabler of investment decisions that serve sustainability.

The clean-energy transition is bringing about fundamental changes in the function and organization of the financial sector and monetary system. As a result, new demands are being placed on central banks and market regulators. The interdisciplinary approaches pursued by researchers at the House of Finance are of particular benefit for the study of policy measures designed to enable climate-friendly investment. Indeed, insights from a range of fields – including law, sociology, economics, and natural sciences – are essential for assessing the impact of policy measures on financial markets and the real economy as well as for ensuring an effective regulatory regime.

Activities at the House of Finance

06/10/24 | SAFE: Event

The Leibniz Institute for Financial Research SAFE, the German Standard-Setter DRSC, and…

The Leibniz Institute for Financial Research SAFE, the German Standard-Setter DRSC, and the Goethe University Frankfurt, in cooperation with the IFRS Foundation and the International…

05/29/24 | CFS, House of Finance: News

The green transformation of the economy is a global challenge. An international exchange…

The green transformation of the economy is a global challenge. An international exchange of knowledge and expertise in this area is therefore more urgent than ever.

04/25/24 | House of Finance: News

Internationally comparable standards for corporate sustainability reporting are an…

Internationally comparable standards for corporate sustainability reporting are an important prerequisite for achieving climate and other sustainability goals worldwide. The International…

03/01/24 | SAFE: Working Paper

In this study, we unpack the ESG ratings of four prominent agencies in Europe and find…

In this study, we unpack the ESG ratings of four prominent agencies in Europe and find that (i) each single E, S, G pillar explains the overall ESG score differently,(ii) there is a low…

02/29/24 | SAFE: Working Paper

We document the individual willingness to act against climate change and study the role of…

We document the individual willingness to act against climate change and study the role of social norms in a large sample of US adults. Individual beliefs about social norms positively…

02/23/24 | CFS: Working Paper

This research focuses on the cost of financing green projects on the primary bond market…

This research focuses on the cost of financing green projects on the primary bond market and tests for a potential price differential between green bonds issued by government entities and…

Program area experts

Tobias Berg

Tobias Berg

Goethe Universität Frankfurt (Professor), SAFE (Research Fellow), IWH (Research Professor)
  • Bankensektor
  • FinTech
  • Klimafinanzierung
Roman Inderst

Roman Inderst

Goethe Universität Frankfurt (Professor)
  • Green Finance
  • Competition
  • Consumer Protection
Loriana Pelizzon

Loriana Pelizzon

Leibniz Institute for Financial Research SAFE & Goethe University, Chair of Law and Finance
  • Financial Markets
  • Market Microstructure
  • Sovereign and Systemic Risk
Tobias Tröger

Tobias Tröger

Goethe Universität, Kolleg-Forschungsgruppe LawFin; Leibnizinstitut SAFE, Cluster Law and Finance; IMFS Forschungsprofessor
  • Bank- und Finanzmarktregulierung
  • Sustainable Finance
  • Corporate Governance
Manfred Wandt

Manfred Wandt

Institut für Versicherungsrecht FB 01, Institute for Law and Finance, International Center for Insurance Regulation
  • Versicherungsrecht
  • Vertragsrecht
  • Internationales Haftungs- und Schadensrecht