Entries for 'Sustainable Finance'

Global agriculture urgently needs transition: Delaying transition to sustainable agricultural practices would have high costs, with current practices ...

After a sharp decline in Q1 2024, global ESG fund flows registered modest improvement in Q2, though U.S. ESG funds continue to experience outflows. As energy become a major national security theme for major economies, strong growth in clean energy investment is anticipated in 2024 and beyond, driven by national industrial policies such as the U.S. Inflation Act (IRA), the EU Green Deal and similar incentive schemes around the world.

Despite a decline in carbon credit issuance (supply) in 2022-23 as market standards took shape, carbon credit retirements (an indicator of demand) have remained broadly stable.

The ESG debt universe topped $6.5 trillion in H1 2024, up from $5.4 trillion a year ago. ESG debt issuance was over $700 billion in H1 2024, broadly stable vs. H1 2023.

EV and hybrid vehicle sales have skyrocketed, rising more than eightfold over the past five years. While market growth has been slower in recent months, we expect this expansion to continue at a more gradual pace in 2024.

Agriculture is is around 4% of the global economy, with over half of global production coming from China, India, and the U.S. Given the growing policy focus on this vital sector, we are launching a new IIF Sustainable Agriculture Working Group.

AI’s ability to source and process mass data is a game-changer for sustainability impact analysis, compliance, and innovation. The AI toolkit can help improve metrics and reduce the cost of compliance, e.g. in ESG disclosure and risk management.

2024 is poised for strong growth in clean energy investment, with continued support from the U.S. Inflation Reduction Act (IRA), the EU Green Deal, and similar incentive schemes around the world.

Demand for voluntary carbon credits has continued to pick up in 2024, with year-to-date retirement levels reaching record highs. However, new supply has not kept pace—issuance in voluntary carbon markets has remained on par with levels seen in 2022-23, well below the record high levels seen in 2021.

The ESG debt universe topped $6.3 trillion in Q1, up from $5.1 trillion a year ago and is expected to surpass $6.5 trillion by mid-2024. While early Q2 has been slower, the first three months of 2024 saw a sharp rebound in ESG debt issuance, coming in at over $350 billion—the majority in green bonds.

Achieving a net-zero global economy by 2050 will require significant financial investment in emerging markets and developing countries—which by 2050 will represent a much larger portion of the global economy and population than today.

The IIF hosted its 2024 IIF Spring Meetings between April 15-22, alongside the IMF / World Bank Spring Meetings in Washington, DC.

On Thursday, April 18, the IIF submitted a comment letter in response to a European Banking Authority (EBA) Consultation Paper on Draft Guidelines on the management of ESG risks.

The Institute of International Finance (IIF) has published it's Sustainable Finance Monitor - April 2024

Transitioning towards a sustainable agricultural system is crucial to address biodiversity loss and nature-related risks on the path to a net-zero economy. This shift will be quite challenging—perhaps even more so than the clean energy transition—given that over 330 million people across 78 countries are currently facing an acute level of food insecurity.

Nature and biodiversity are emerging as critical areas of market focus, attracting increasing attention from corporates, financial institutions, and policymakers.