DGI-3 Recommendation 4
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- Canonical URL
- DGI-3 Recommendation 4
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Overview and objectives
- The launch of the third phase of the DGI (DGI-3) was endorsed by the G20 Leaders in November 2022.
- DGI-3 aims at implementing robust, comprehensive, and comparable statistics on four policy priority areas: climate change mitigation and adaptation, household distributional aspects, financial innovation and inclusion, and data access and sharing.
- The Working Group on Securities Databases (WGSD) developed a project plan for Recommendation 4 on Climate Finance that:
- Defines precise data sets on climate finance debt securities and green listed shares.
- Envisages G20 economies to “provide (preferably on a quarterly frequency) experimental data on issuances and holdings of green debt securities and listed shares securities to the BIS, based on self-commitments and consistent as much as possible with the Handbook on Securities Statistics (HSS), and any other specific guidance developed in the context of the recommendation, and provide documentation on the compilation methodology.”
- Envisages G20 economies to “work together […] to develop methodological guidance to support greater interoperability and comparability of approaches for the statistical recording of green debt securities and listed shares across the G20 economies.”
Workshops, consultations, and survey findings
- Virtual workshop to kick off Recommendation 4:
- Held on 15-16 May 2023.
- Attended by Recommendation 4 Task Team members and representatives from 21 G20 and FSB economies, the FSB, the OECD, the World Bank and WGSD members.
- Outcomes: discussed project plan, began defining reporting templates, exchanged compilation experiences, stressed importance of the self-commitments approach and leveraging DGI-2 Recommendation 7 infrastructure.
- Survey on securities statistics and climate finance data:
- Conducted during July/August 2023.
- Results: many G20/FSB economies already collect data on issuances of climate finance debt securities; existing collections are generally aligned with the basic structure of the proposed Recommendation 4 reporting templates.
- Physical Workshop in Cape Town (ZA):
- Held on 5-6 October 2023; hosted by the South African Reserve Bank (SARB) with BIS IFC support and organised by the WGSD.
- Attended (physically and virtually) by 72 Recommendation 4 Task Team members and representatives from 19 G20 and FSB economies, 4 other IFC member central banks, WGSD members, OECD, and FSB.
- Outcomes:
- Agreed on Recommendation 4 reporting templates and targets.
- Templates cover tables for issuances, holdings and from-whom-to-whom statistics on green, sustainability, and sustainability-linked debt securities, and green listed shares.
- Debt-securities templates present “of which” breakdowns of the established DGI-2 Recommendation 7 breakdowns.
- Reporting targets:
- Basic intermediate target for core data on green debt securities by end-2025.
- Final target for other data by end-2027 (end of DGI-3).
- Reporting will rely on existing DGI-2 Recommendation 7 reporting infrastructure, including frequency, timeliness, use of HSS methodology, and use of the Global DSD for Sector Accounts (NA_SEC).
- Agreed templates and targets are documented in an accompanying “Explanatory Note on the Recommendation 4 Reporting Templates”.
- Written consultation and guidance development:
- Task Team agreed to collect economies’ self-commitments on climate finance debt securities by end-2023; self-commitments for green listed shares to be collected later after further definition work.
- The Workshop initiated discussion of definitions for climate finance securities and provided feedback on draft definitions by the Intersecretariat Working Group on National Accounts (ISWGNA) in the context of the SNA update process.
- Guidance notes and harmonisation:
- WGSD prepared two guidance notes: Guidance Note on Climate Finance Debt Securities and Guidance Note on Green Listed shares.
- Notes include harmonised definitions and compilation guidance developed in close cooperation with the respective SNA drafting team to ensure alignment of Recommendation 4 and 2025 SNA definitions.
- The notes were agreed by the Recommendation 4 Task Team in a written consultation in September 2024.
- The notes acknowledge that different economies may rely on different taxonomies in the compilation process.
- Virtual workshop on next steps:
- Held on 25-26 November 2024.
- Attended by Recommendation 4 Task Team members and representatives from 19 G20 and FSB economies, the FSB, the OECD, and WGSD members.
- Outcomes: discussed project plan, exchanged compilation experiences, reached common view on next steps including collection of self-commitments for green listed shares and conducting a stock-taking survey on implementation plans.
- Self-commitments timeline and scope:
- Based on agreed templates and guidance, Task Team members provided:
- Self-commitments on reporting data for climate finance debt securities (tables 1.1a to 3.1c of the reporting templates) in January 2024.
- Self-commitments on reporting data for green listed shares (tables 4.1 to 6.1 of the reporting templates) in January 2025.
- The self-commitments provide, for the first time, reporting of harmonised climate finance data in the G20/FSB economies, covering more than 20,000 new time-series on climate finance securities.
- Physical Workshop in Brasilia (BR):
- Held on 20-21 May 2025; hosted by the Banco Central do Brasil (BCB) with BIS IFC support and organised by the WGSD.
- Attended (physically and virtually) by 64 Recommendation 4 Task Team members and representatives from 19 G20 and FSB economies, one other IFC member central bank, WGSD members, OECD, and FSB.
- Outcomes:
- Reviewed self-commitments and results of a stock-taking survey on implementation plans conducted in early 2025.
- Survey showed economies have concrete plans for implementing their self-commitments.
- Identified best practices, available data sources including commercial data, and challenges—especially compiling aggregates for green listed shares.
- Agreed to allow collection of additional self-commitments (especially for green listed shares) considering practical compilation guidance shared at the Workshop.
Reporting templates, targets, and technical specifications
- Reporting templates:
- Cover issuances, holdings and from-whom-to-whom statistics on:
- Green, sustainability, and sustainability-linked debt securities.
- Green listed shares.
- Debt-securities templates present “of which” breakdowns corresponding to DGI-2 Recommendation 7 breakdowns.
- Specific tables referenced: tables 1.1a to 3.1c (climate finance debt securities) and tables 4.1 to 6.1 (green listed shares).
- Reporting targets:
- Basic intermediate target for core data on green debt securities by end-2025.
- Final target for other data by end-2027.
- Methodological alignment and infrastructure:
- Reporting to use existing DGI-2 Recommendation 7 infrastructure, including frequency and timeliness practices.
- Use the methodology of the Handbook on Securities Statistics (HSS).
- Use the Global DSD for Sector Accounts (NA_SEC).
- Technical implementation support:
- WGSD prepared DSD tables for the Recommendation 4 reporting templates, indicating relevant DSD keys for the Global DSD on Sector Accounts (NA_SEC) and the BIS MACRO DSD.
Key outcomes, deliverables, and next steps
- Harmonised definitions and compilation guidance for climate finance debt securities and green listed shares agreed (September 2024).
- Self-commitments collected:
- Climate finance debt securities in January 2024.
- Green listed shares in January 2025.
- Coverage expansion:
- Reporting harmonisation across G20/FSB economies will cover more than 20,000 new time-series on climate finance securities.
- Next implementation steps agreed by Task Team members include:
- Collection of additional self-commitments, especially for green listed shares.
- Continued knowledge-sharing and practical guidance dissemination to support economies with different statistical capacities and taxonomies.
- Use of the DSD tables and agreed templates to operationalise reporting.
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References