Green Financial Intermediation – From Demand to Impact (INTERACT)

The INTERACT project, carried out jointly with the ifo Institute, analyses how the financial sector can support sustainable investments more effectively. It analyses all the steps of financial intermediation – from the role of private investors to the potential implications of capital and credit markets to the impact of regulatory measures such as the EU taxonomy. The results show that ESG ratings and financial knowledge have a decisive influence on green investments, that green bond issuances encourage banks to lend in a more climate-friendly way, and that regulatory measures have had some impact on mobilizing green investments, but no clear results on whether they effectively direct capital flows toward sustainable projects. At the same time, the reporting burden, particularly for small, non-reporting companies in the supply chain, is considered high.

The key research findings will be presented and discussed at our conference.

The project is funded by the Federal Ministry of Education and Research (BMBF).