Sustainability-Linked Finance : Mobilizing Capital for Sustainability in Emerging Markets

Sustainability-linked finance is designed to incentivize the borrower’s achievement of environmental, social, or governance targets through pricing incentives. Launched in 2017, it has now become the fastest-growing sustainable finance instrument, with over $809 billion issued to date in sustainability-linked loans and bonds. Yet these instruments are still nascent in emerging markets, which represent only 5 percent of total issuance to date. This note shares examples of recent sustainability-linked financing, including several involving IFC in various roles, to highlight how investors can utilize these new instruments in emerging markets and mitigate greenwashing risks

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Bibliographic Details
Main Authors: de la Orden, Raquel, de Calonje, Ignacio
Format: Brief biblioteca
Language:English
Published: International Finance Corporation, Washington, DC 2022-01
Subjects:EMERGING MARKET ECONOMIES, ENVIRONMENTAL, SOCIAL, AND GOVERNANCE, CLIMATE FINANCE, SUSTAINABLE FINANCE, CARBON DIOXIDE EMISSIONS, GREEN GROWTH,
Online Access:http://documents.worldbank.org/curated/undefined/444741642698832833/Sustainability-Linked-Finance-Mobilizing-Capital-for-Sustainability-in-Emerging-Markets
http://hdl.handle.net/10986/36872
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