Publication: Sustainability-Linked Finance: Mobilizing Capital for Sustainability in Emerging Markets
de la Orden, Raquel
de Calonje, Ignacio
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
Link to Data Set
“de la Orden, Raquel; de Calonje, Ignacio. 2022. Sustainability-Linked Finance: Mobilizing Capital for Sustainability in Emerging Markets. EMCompass;Note 110. © International Finance Corporation, Washington, DC. http://hdl.handle.net/10986/36872 License: CC BY-NC-ND 3.0 IGO.”
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