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

_IMF Working Papers, September 9, 2022_

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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

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### 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**
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_Source: https://www.imf.org/en/publications/wp/issues/2022/09/09/sustainable-finance-in-emerging-markets-evolution-challenges-and-policy-priorities-521689_