Highly polluting companies need trillions of dollars of funding to reduce their carbon emissions. Transition bonds are mooted as one solution, but investors are far from convinced.
One of the world’s most influential financiers of oil and gas remains reluctant to threaten clients with funding cuts as a means to hit net zero. The US bank argues its investment-led approach to reducing carbon intensity within sector hotspots goes far enough.
The US bank has doubled down on efforts to facilitate private capital into sustainable projects in emerging markets. But its year-old development finance institution is so far finding it hard to measure the impact of such deals.
The company's top sustainable finance bankers acknowledge the sector is guilty of not “driving enough capital” to reach net-zero targets, but say huge structural issues are a barrier for change.