Ireland is to be the location for a new International Sustainable Finance Centre of Excellence.
The centre will act as an international hub from which the finance community based in Ireland will help develop a response to sustainability.
It will conduct research, help develop talent and conduct leadership activities.
Its aim will be to help finance firms to design and implement new financial mechanisms that will help with the movement to a net-zero economy.
The centre is one of the targets of the Government's Sustainable Finance Roadmap and will help deliver the Ireland for Finance Strategy 2025.
The venture is backed by the United Nations Development Programme (UNDP) and Skillnet.
"Sustainable finance is critical for Ireland’s future growth in financial services ensuring the industry has the strategies and skills needed to take action," said Minister for Further and Higher Education, Research, Innovation and Science Simon Harris.
"The collaboration between my Department and the Department of Finance through Skillnet Ireland, Sustainable Finance Ireland, the UNDP and EU Climate-KIC to develop the Centre will support the sector’s future talent development needs and inspire new people to enter this growing new area of work."
The centre was launched at the start of Climate Finance Week Ireland.
"The reorientation of the financial system towards sustainability is only beginning but has a clear trajectory with real opportunities for countries, companies and communities that show leadership," said Paschal Donohoe, Minister for Finance.
"The moment is right for leading financial centres to take a quantum leap to transition in this direction; in doing so, serve the needs of the real economy and support efforts at limiting climate change and biodiversity loss."
It is hoped that it will be operational by the middle of January next year.
"The International Sustainable Finance Centre of Excellence will help in addressing the challenge of the current finance model not working for both the people and the planet," said Marcus Netto, Director, UNDP Sustainable Finance Hub.
"In advance of the upcoming climate talks – COP27, its establishment is to be welcomed."