This study constitutes the first comprehensive overview on the range of instruments available to policymakers to align the financial sector with 2°investment scenarios. Developing such an overview would allow for more research on qualitative and quantitative research on the mechanisms of individual tools and their impact. As such, this working paper should not be read as a policy primer, nor as a conclusive analysis as to the relative merits of individual policies. More importantly, policies highlighted in the following pages may in fact turn out to be counterproductive, inefficient, or simply inappropriate in addressing the 2° investment challenge. Instead, the paper is designed to provide a comprehensive overview of the financial policy tools that can potentially form a part of a 2° investing policy framework in the next years.
