The Sustainable Finance Advisory Committee of the Federal Government in the 20th legislative term

The German government is not only playing a role by adjusting the regulatory framework to help make Germany into a leading location for sustainable finance – it is also a stakeholder on financial markets. The way it deals with public funds can set a good example that influences the market. Close alignment with the Paris climate targets should be ensured with regard to a) its own investments, hedges, guarantees and incentive programmes, b) subordinate institutions such as KfW and public-law entities, and c) promoting and guaranteeing exports. This shows private-sector stakeholders on the financial markets that the German government takes sustainable finance seriously and that it is gaining experience that will be useful to other stakeholders. To this end, all parts of the German government must act in concert. No ministry can be allowed to hinder progress with short-sighted arguments.