Funding for Future: How sustainable finance reshapes climate action – and why journalists should listen more closely

Sustainable finance has long been below the radar of most journalists covering the energy transition and climate action– and yet, it could soon turn into one of global climate action’s most important storylines and also influence a wide range of other environmental and social challenges. Getting to the bottom of a topic full of technical terms and concepts from the world of banking may prove tricky for journalists who are unfamiliar with the finance sector. The real-world impacts of financial decisions are often hard to predict and track. Conversely, those who regularly report on financial markets struggle to stay ahead of the rapid changes unfolding in climate policy and to overcome the narrow focus on the quarterly profit and loss accounts that has long dominated finance journalism.

Together with experts from the German Sustainable Finance Research Platform, Clean Energy Wire aims to bridge this divide and enable reporters from all backgrounds to connect the dots on how finance shapes climate action. We will focus on the broader implications of finance in the climate crisis and try to assess whether existing initiatives to clean up investment practices amount to mere greenwashing – or if it could become a true game changer. In the first installment of our event series devoted to this fast-developing topic, we aim to:

• Offer an overview of the fundamental role the financial sector plays in meeting international climate targets
• Illustrate the climate impact of sustainable finance on the basis of concrete examples
• Advise journalists what debates and developments to watch out for in the sector
• Empower reporters to develop their own sources and networks in the field
• Provide a solid fundament for journalists to fall back on when researching for a new project

Russia’s war in Ukraine has not only brought immense human suffering to a peaceful country, but it has also shattered decades of German and European security and energy policy. This means that understanding the underlying financial networks and investment principles of energy trading has become more important than ever for those covering the fight against the climate crisis. With the EU, and particularly Germany, suddenly faced with an unprecedented urgency to transform their energy systems, trillions of euros will be flowing into infrastructure for power production, industry, heating and transport in the next years. An informed public debate that can scrutinize whether this money is put to good use depends on reporting that can explain how financial market actors will define sustainable investments – be it in nuclear power, gas infrastructure or even in arms producers.