What have we Learned about Green and Climate Finance?

The growing urgency of climate change has brought green and climate finance to the forefront of public discourse and academic inquiry. As governments, corporations, and investors seek to mitigate climate impacts and advance sustainable development, the financial system is increasingly recognized as a key enabler of the low-carbon transition. This Special Issue of the British Accounting Review presents cutting-edge research that explores the evolving interplay between public policy priorities and the expanding body of academic literature on green and climate finance. The commentary provides an overview of current theoretical perspectives and empirical developments (particularly since 2020) and introduces the seven papers featured in this “Special Issue on Green and Climate Finance.” In doing so, it addresses the central question: what have we learned about green and climate finance? Our goal is to take stock of the evidence to date, synthesizing insights from the academic literature and placing the contributions of this Special Issue within a broader context. We organize our review into five areas: sustainable investing and shareholder activism; climate risk disclosure; green bonds and sustainable finance instruments; the real effects of climate risk on firms and the economy; and the measurement of climate risk and exposure. Before turning to these themes, we first consider the evolving public discourse and policy context that motivates and frames much of this research.