Sustainable Finance in Emerging Markets: Evolution, Challenges, and Policy Priorities

ByRohit Goel, Deepali Gautam, Fabio M Natalucci

September 9, 2022

Disclaimer: IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

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.

Subject: 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

Pages:
29
Volume:
2022
DOI:
https://doi.org/10.5089/9798400218101.001
Issue:
182
Series:
Working Paper No. 2022/182
Stock No:
WPIEA2022182
ISBN:
9798400218101
ISSN:
1018-5941

IMF’s Work

RESOURCES

TOPICS

Flagship Publications

Other Publications

IMF reports and publications by country

Regional Offices

All News

See Also

For Journalists

Press Center

RESOURCES

FLAGSHIPS

KEY SERIES

IMF NOTES

Loading component...

IMF Working Papers