Launch of new Global Green Finance Index 1March 14, 2018
As we accelerate through the 21st century, the world is facing a number of significant challenges which will require unprecedented levels of investment in systems and infrastructure if they are to be overcome.
Developed jointly by Z/Yen, as part of its Long Finance Initiative, and Finance Watch, and supported by MAVA, a new Global Green Finance Index was launched on 14 March 2018 in Brussels.
This index provides policy makers, businesses, academics and NGOs with data that can be used to facilitate the development of sustainable financial systems and the greening of financial products and services. It seeks to measure perceptions of the quality and depth of green financial products across the world’s financial centres. This is still early stages of the Index and it raises a number of questions that invite further research. The initial conclusions are:
– The leading green financial centres in each region are London, San Francisco, Shanghai and Shenzhen, Johannesburg and Cape Town, Mexico City, and Moscow.
– Paris, Frankfurt and New York lead the centres most cited as likely to become more significant over the next two to three years.
– Financial centres that have shown leadership in green finance policy are expected to gain in significance, with Paris at the top of this list.
– In some countries, smaller centres with a strong green focus such as San Francisco and Hamburg outperformed larger centres such as New York and Frankfurt.
– The rankings are liable to change in future editions, as they are based on tightly clustered scores in the range of 322-437 points out of 1,000.
– The level of scores suggests that green finance can grow substantially in size and quality.
– Supportive policy measures and investor demand are seen as the main drivers of green finance.
– Renewable Energy Investment, Green Bonds and Sustainable Infrastructure Finance were rated as areas of high impact on sustainability and of high interest to respondents.
– Disinvestment from fossil fuels was rated as high impact on sustainability but low interest to respondents, suggesting room for policy change.