General Government Affairs and Finance

Article 2(1)(c) of the Paris Agreement of 2015 creates the political mandate to make finance flows consistent with a pathway towards low greenhouse gas emissions and climate-resilient development. In response to this mandate, the review and reduction of emissions from financial investments was defined as one of the goals in the Climate Vision 2050 presented by the Government in October 2020.

In March 2020, the Government decided to take part in the internationally coordinated climate compatibility test PACTA 2020. The test, conducted by the non-profit global think tank 2° Investing Initiative, measures the compatibility of investments in climate-relevant sectors with the goal of the Paris Agreement referred to above. Banks, asset managers, pension schemes, and insurers were invited to participate in this free test on a voluntary basis in 2020. The results show that the investments of the participating institutions in some economic sectors are not yet aligned with a climate-friendly target path. It also shows, however, that there is a growing awareness of the issue in Liechtenstein's financial sector. In 2022, Liechtenstein underwent the PACTA 2022 climate compatibility test. The report was acknowledged by the Government in October 2023.

The report on the results of the PACTA 2022 climate compatibility test for the Liechtenstein financial market in English and a summary in German are available here: