Mike Wardle, Professor Michael Mainelli

Published by
Long Finance & Financial Centre Futures (April 2024), 75 pages.

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The Global Green Finance Index 13 - Supplement "H2 Go - The Hydrogen Economy, Pipedream Or Panacea?"

The thirteenth edition of the Global Green Finance Index (GGFI 13) was published on 23 April 2024. GGFI 13 evaluates green finance offerings from 96 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.

There appears to be strong confidence in the development of green finance in financial centres, with every centre’s rating in the index moving up in this edition, and the average rating up 4.21% compared with GGFI 12.

The centres which perform well in the GGFI continue to be places that are committed to environmental development across the economy as well as directly in finance, and in building their skills for green finance for the future. Centres such as London, Geneva, Zurich, and New York have a commitment to providing sustainable improvement and continuing to build their green infrastructure.

Among those responding to the GGFI survey, Energy Efficient Investment, Disinvestment From Fossil Fuels, and Green Insurance are rated as the areas of green finance with most impact. Risk Management Frameworks, International Initiatives, and Renewables are listed by respondents as the major drivers of green finance.

On international initiatives, while some progress was made at COP 28 in terms of commitments to the Loss And Damage Fund and new commitments to the Green Climate Fund. However, the New Collective Qualitative Goal, which will set the future requirements for adaptation finance, will be taken forward at COP 29 later in 2024.

In the supplement to this edition of the GGFI, we review the current and potential future of the hydrogen economy as an element of the transition to sustainable fuels, and in particular its use in industry and transport. Respondents to the GGFI survey predict that hydrogen is most likely to replace fossil fuels in steel production and the chemical industries.

Index Results

  • London retained its first position in the index, while Geneva and Zurich overtook New York to take second and third places.
  • Montreal entered the top 10 in this edition of the index, replacing Copenhagen.
  • Western European centres take five of the top 10 places, with US centres taking three. Singapore is the only Asia/Pacific centre in this leading group.
  • The margins separating centres at the top of the index continue to narrow in GGFI 13. Among the top 10 centres the spread of ratings is only 13 points out of 1,000, compared to 20 points in GGFI 12.
  • Only nine centres fell 10 or more places in the rankings, and four rose 10 or more places.
  • We researched 127 financial centres for GGFI 13. The number of centres in the index has increased to 96 (94 in GGFI 12), with the addition of Lugano and Kaunas.
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