Mike Wardle, Professor Michael Mainelli, Simon Mills
Long Finance & Financial Centre Futures (April 2023), 77 pages.
Share on social media:
The 11th edition of the Global Green Finance Index (GGFI 11) was published on 20 April 2023. GGFI 11 evaluates green finance offerings from 86 major financial centres around the world. The GGFI serves as a valuable reference into the development of green finance for policy and investment decision-makers and is sponsored by Abu Dhabi Global Market.
The centres which perform well in the GGFI are generally places that commit to environmental improvements across the economy as well as directly in finance. Centres such as London, New York, and Stockholm have a commitment to providing sustainable economic development and to building their skill base and green infrastructure.
In the last edition of the GGFI, we noted the growing interest in carbon pricing and trading as a mechanism to address the central issue of greenhouse gas emissions, particularly as existing systems of ESG analytics come under criticism. Among those responding to the GGFI survey, Sustainable Infrastructure Finance, Carbon Markets, and Energy Efficient Investment are rated as the areas of green finance with most impact. The fact that carbon markets are now listed as one of the top factors with an impact on climate change reflects the increased focus on carbon pricing and trading.
Policy & Regulatory Frameworks continue to be identified as the leading driver in the development of green finance, alongside International Initiatives. This continues to highlight the importance of transnational cooperation and policy in setting the framework for green finance to thrive.
In the supplement to this edition of the GGFI, we focus on transition finance, and the efforts to move away from fossil fuels to renewable energy sources. The exposure of companies, economies and financial centres to transition risk needs both further research and policy change.