COMPETITION INTENSE IN GREEN FINANCE

The ninth edition of the Global Green Finance Index (GGFI) evaluates the green finance offering of 81 financial centres. The GGFI serves as a valuable measure of the development of green finance for policy and investment decision-makers. The top 20 centres in GGFI 9 are shown in the table below.

GGFI 9 Headlines

• London and Amsterdam maintained their first and second positions in GGFI 9, both improving their rating by more than 10 points.
• London may have benefitted from both recent UK government action on green finance, including the issue of the first UK sovereign green bond, and from its position as host of COP 26.
• New York moved into the top 10, taking fifth place.
• The margins separating centres at the top of the index have broadened in GGFI 9. Among the top 10 centres the spread of ratings is 45 out of 1,000, compared to 31 out of 1,000 in GGFI 8.
• We researched 126 financial centres for GGFI 9. The number of centres in the index has increased to 81 (80 in GGFI 8), with the addition of Santiago.

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GGFI 9 includes a supplement on the issuance of the first Sovereign Sustainability–Linked Bond by the Republic of Chile, and the implications of this new product for both the sovereign bond and green bond markets. The concept of policy performance bonds was

developed by Z/Yen in 2005 and they have been used in the corporate world in recent years. This is the first example of a sovereign policy performance bond.

Full details of GGFI 9 can be found at www.greenfinanceindex.net.

Professor Michael Mainelli, Executive Chairman of Z/Yen Group, said:

“The challenge to western Europe from North American and Asia/Pacific centres continues showing the global nature of the green finance challenge. We focus in this edition of the GGFI on Chile’s adoption of a sovereign sustainability-linked bond, which focuses on sustainability outcomes. The use of these policy performance bonds may be key to addressing the risk of political instability through a long-term commitment by counties to achieving their sustainability goals.”

ENDS

Information For Editors

About GGFI 9

GGFI 9 rates 81 financial centres across the world combining assessments of the depth and quality of green finance in those centres from financial professionals with quantitative data which form instrumental factors.

GGFI 9 uses 4,483 financial centre assessments collected from 747 financial services professionals who responded to the GFCI online questionnaire. The GGFI is updated regularly, and ratings change as assessments and instrumental factors change.

To find out more about sponsorship opportunities, joining the Vantage Financial Centres network, further research, and bespoke reports on individual financial centres, please contact us.

Previous Editions

Previous editions of the GFCI can be accessed at https://www.longfinance.net/programmes/financial-centre-futures/global-green-finance-index/ggfi-publications/.

Long Finance

GFCI is part of the Long Finance initiative (www.longfinance.net), which undertakes research programmes on Financial Centre Futures, Sustainable Futures, Distributed Futures, Eternal Coin, and Meta-Commerce. Please get in touch for more details on Long Finance.

Contact

For more information please email Mike Wardle at mike_wardle@zyen.com or by phone on +44 (0) 20 7562 9562 or +44 (0) 7880 737319.