Sustainable Finance in Emerging Markets: Evolution, Challenges, and Policy Priorities
IMF Working Papers, September 9, 2022
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- Sustainable Finance in Emerging Markets: Evolution, Challenges, and Policy Priorities
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Bibliographic details
- Authors: Rohit Goel, Deepali Gautam, Fabio M Natalucci
- Published: September 9, 2022
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9798400218101.001
Summary
- Sustainable finance has become a key focus area for global investors and policy makers.
- Last year proved to be a breakout year for emerging markets (EMs), with sustainable debt issuance in 2021 surging to almost $200 billion.
- This working paper, the first comprehensive study in the literature, analyzes the evoluiton of EM sustainable finance markets, including differences with advanced economies.
- The analysis shows how sustainable finance in EMs is growing fast not just in aggregate but importantly across many dimensions.
- The paper also identifies key development areas for EMs and policies to strengthen the resilience of sustainable finance markets.
Major findings and analysis
- Growth and scale
- Sustainable debt issuance in 2021 surged to almost $200 billion.
- Sustainable finance in EMs is growing fast in aggregate and across many dimensions.
- Comparative analysis
- The paper analyzes differences between EM sustainable finance markets and advanced economies.
- Development areas
- The paper identifies key development areas for EMs to deepen and broaden sustainable finance markets.
- Resilience
- Policies to strengthen the resilience of sustainable finance markets in EMs are a central focus of the analysis.
Policy priorities and recommendations
- The paper outlines policies to strengthen the resilience of sustainable finance markets in emerging markets.
- Emphasis on addressing identified development areas to support continued growth and stability of EM sustainable finance.
Subjects and keywords
- Subjects: Bonds, Climate change, Climate finance, Corporate social responsibility, Economic sectors, Emerging and frontier financial markets, Environment, Financial institutions, Financial markets
- Keywords: AE ESG, Bonds, Climate change, Climate finance, Corporate social responsibility, EM ESG market, Emerging and frontier financial markets, Emerging Markets, ESG, ESG indices, ESG score, finance market, Financial sector, Global, Sustainability, Sustainable Finance
IMF Working Papers 2022/182
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- Working Paper