How sustainable can sovereign debt be?
As another emerging economy gears up to tap international markets with a green bond, Capital Monitor explores how much potential there is for governments to make their debt sustainable.
Institution / Government
Government
Drive to standardise impact measurement gathers momentum
Under pressure from the financial sector, the EU, G7 and other influential bodies are ramping up the push to achieve consistent measurement and reporting of sustainability impact amid concerns that separate initiatives are hindering this goal.
Follow the money to fight ‘big oil’, says ClientEarth chief
The founder of ClientEarth, James Thornton, explains how the environmental law charity takes on large corporates and governments to tackle climate change.
Sustainability-linked bonds could help solve UK inflation woes
As one of the more eager issuers of bonds linked to inflation, the UK faces the prospect of higher borrowing costs as high inflation begins to look less temporary than initially expected. Sustainability-linked bonds, relatively new instruments, could provide a long-term antidote.
Cop26 methane pledge needs “money and muscle”
There are calls for regulation to support the new global commitment to cutting methane levels, seen as one of the quickest ways to tackle climate change. But how it will be funded is unclear, and the absence of China, India and Russia from the pledge does not bode well.
White Papers
Allison Herren Lee: SEC climate champion sets out wish list
The US Securities and Exchange Commission has long seemed oblivious to the dangers of environmental inaction, but things are changing fast under new leadership. Commissioner Allison Herren Lee tells Capital Monitor how the regulator is modernising to tackle climate change.
Understanding KiwiRail’s landmark green loan deal
New Zealand’s state rail and ferry operator is buying two new diesel-electric ferries with the help of the first debt to be certified by the Climate Bonds Initiative. KiwiRail’s move is a step forward in decarbonising the shipping sector and progressing the country’s net-zero emissions goals.
Cop26: Does it matter who attends?
The stakes are higher than ever for the upcoming UN climate talks in Glasgow to deliver results on policy promises, but the absence of key players has tempered expectations. Still, there are positive signs of progress from the world of business and finance.
How outdated trade agreements are undermining climate progress
Decades-old rules reinforce the status quo on trade and keep the odds stacked against renewable energy – and there appears little interest in changing them. Key bodies like the World Trade Organization need to act fast, say experts.
“Hypocritical” EU fuel subsidies “may derail” climate goals
Members of the European Parliament voted at the end of September to extend natural gas subsidies until 2027. Critics are slamming the decision, adding to pressure on governments to end support for fossil fuels. But even progressives acknowledge the tricky decisions involved.
Banks and regulators face off over climate stress tests
Pressure is growing for prudential measures to help tackle the climate crisis, with banks facing a rise in estimated credit losses of up to 20% in a 'hot-house' scenario. But bankers say climate-related stress tests should not lead to more capital requirements, and some propose alternatives.
Why blue bonds and ESG debt swaps remain niche
Initiatives are under way to build the markets for so-called blue bonds – which finance ocean-related conservation projects – and environmentally related debt swaps. But there are doubts over the scalability of such programmes, despite the huge appetite for sustainable assets.
Australia’s “out of touch” coal probe could boost ESG investment
An Australian parliamentary inquiry into the domestic finance sector’s shift away from coal exposure underlines the government's reputation as a climate policy laggard. But it may inadvertently help boost the country’s sustainable investment industry, argue some market participants.
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