Entries for 'Sustainable Finance'
May 10, 2023
Amid tighter monetary and financial market conditions, ESG fund flows remain subdued and volatile. After large outflows in March, April saw a slight recovery in investor appetite for ESG funds. However, outflows from emerging market ESG funds accelerated in April.
May 3, 2023
The ESG debt universe hit $5.1 trillion in Q1 2023, up from $3.8 trillion a year ago and $2.3 trillion in Q1 2021. Amid the recent banking sector turmoil, ESG loan issuance fell sharply in Q1 2023, coming in at $40 billion—over 65% lower than in Q4 2022. In contrast, ESG bond issuance reached its highest level in five quarters.
April 25, 2023
The voluntary carbon markets continue to gain momentum despite financial market volatility in recent months. The proliferation of net zero targets by large corporates remains the major driver of market expansion.
April 18, 2023
At our IIF Sustainable Finance and Global Debt & Financial Stability Roundtables last week, key themes included net zero transition finance as well as the impact of higher funding costs for vulnerable sovereign and corporate borrowers.
April 12, 2023
Ahead of the Global Sovereign Debt Roundtable, the G20 Ministerial Meetings and IMF and World Bank Spring Meetings, this letter sets out private sector perspectives on the work of the G20-IMF-World Bank convened Global Sovereign Debt Roundtable.
March 29, 2023
The IIF Sustainable Finance Monitor for Q1 discusses key trends shaping the global sustainable finance agenda (including climate competitiveness and scenario analysis), regulatory, policy, and research developments, and shares updates on the IIF's sustainable finance activities.
March 9, 2023
Despite the urgency of fighting climate change, the exploration and development of new energy technologies to replace fossil fuels could take many generations. Strong policy support to incentivize front-loaded investment could significantly shorten the time that it takes to develop new green technologies—improving nuclear energy provision, green hydrogen, carbon capture and storage, biomass etc.
March 2, 2023
Just Energy Partnerships—launched at COP26 to help emerging economies shift to clean energy—aim to mobilize international public and private capital to accelerate electrification in emerging and developing economies. Most existing JETP funding commitments are from traditional development finance institutions, including multilateral development banks (MDBs). However, a key goal of JETPs is to leverage public funding to catalyze private capital.
February 9, 2023
ESG fund flows have picked up, amid easier financial conditions and growing demand. Global climate flows surpassed $1.1 billion in 2022 - up over 25% from $870 billion in 2021. On average, ESG stocks and bonds are up by some 5% in 2023 ytd. Global sustainable/ESG debt issuance was down over 15% to $1.3 trillion in 2022, from $1.5 trillion in 2021. We project global ESG debt issuance to climb to $1.7 trillion in 2023 and near $2 trillion in 2024.
February 2, 2023
Progress by the Integrity Council for the Voluntary Carbon Market (IC-VCM) and the release of the Core Carbon Principles (CCPs) will help address ongoing concerns about voluntary carbon credit quality—a must to support market expansion; Greater price transparency will also help: in this first edition of our new Voluntary Carbon Markets Monitor, we introduce a registry transparency index to assess disclosure of the registries that track and validate the quality of carbon credit projects.
January 26, 2023
The ESG debt universe is fast approaching the $5 trillion mark, up from $3.4 trillion in 2021. While rising global rates weighed on total issuance in 2022, issuance in emerging markets remained strong, reaching an all-time high of $260 billion—mostly driven by China.
January 18, 2023
The IIF’s new report developed with McKinsey “Financing the Net-Zero Transition: From Planning to Practice” examines how financial institutions are rising to the transition finance challenge, as they seek to turn transition plans into tangible emissions reductions financing actions.
January 17, 2023
A commitment to net-zero requires financial firms to transform themselves and manage down their risks—in so doing, they drive real-world change by engaging with customers and markets, and ultimately enabling entire economies to transition to a low-carbon future. This unique position in the global economy makes it incumbent on financial firms to design credible decarbonization strategies, with everything that entails.
January 6, 2023
ESG backlash will continue to be a headwind for market development, but there are many reasons for optimism...
December 28, 2022
At COP15, almost 200 countries reached an agreement to halt and reverse biodiversity loss by 2030 and achieve recovery and restoration by 2050. The deal should speed adoption of the Taskforce on Nature-related Financial Disclosures (TNFD) framework to assess and disclose nature-related risks and opportunities, while accelerating development of nature-positive financial markets.
December 15, 2022
Amid fears of global recession and USD strength, prices for energy transition metals have subsided in 2022… although transition planning and sustained expansion in renewable energy capacity will underpin demand.
December 8, 2022
Climate finance flows are on track to reach a fresh high of $915 billion in 2022; Sustained policy support—amid heightened concerns over energy security—should accelerate the expansion in renewable energy capacity, while increasing energy-efficiency related investment.
December 1, 2022
We are pleased to share the latest edition of our new quarterly chartbook, designed to monitor sustainable flows (to ESG funds, climate finance flows, and climate finance to emerging markets), ESG market development, the electric vehicle industry, and the evolution of the voluntary carbon market. The chartbook also includes our regular ESG Country Scorecard—a useful indicator of progress in areas including carbon efficiency as well as broader environmental and social issues in emerging and frontier markets. We welcome your comments!
November 10, 2022
Voluntary carbon markets (VCMs) are featuring prominently in discussions at COP27, as multiple initiatives are being launched to support their critical role in scaling up finance to emerging and developing economies.
November 3, 2022
The ESG debt universe has grown rapidly, to near $4.5tr in Q322, up from $3tr in Q321 and $1.5tr in Q320. However, overall ESG debt issuance has slowed sharply this year amid broader debt market disruption.