This report consolidates key publications and findings that help assess the progress on greening of the financial system and
aligning the financial sector with global climate goals. It examines the readiness of financial institutions and the contribution
of regulatory bodies, highlights gaps and challenges, and proposes actionable recommendations to advance towards a greener
financial system. Despite some progress, much work remains to align the financial system with climate goals. Financial flows are increasingly directed
towards projects that support climate action, yet significant investment gaps persist, particularly in EMDEs and for adaptation and
resilience investments. While green finance instruments have grown rapidly, there is still untapped potential for further expansion.
Regulatory frameworks are evolving to incorporate climate risks, but the pace and scope of implementation vary widely.
