Issuer innovation and regulatory support can help grow sustainable debt in emerging markets, a critical tool to address the multi-trillion-dollar climate financing gap, according to a new BloombergNEF (BNEF) report, Scaling Sustainable Debt in Emerging Markets.
The report, commissioned by the Dubai Financial Services Authority (DFSA) and the Hong Kong Monetary Authority (HKMA), finds that nearly half of all financing for low-carbon energy companies in the Middle East and North Africa (MENA) and emerging Asia Pacific (APAC) comes from labeled sustainable debt. These instruments are an important channel of capital to the energy transition and have a strong foundation for growth.