Green Fixed Income Issuance Isn’t Enough to Win Over Investors Focused on Net Zero

Investors are becoming increasingly selective about how ‘green’ instruments contribute to wider decarbonisation beyond just qualifying as ‘green’. With greenwashing on the rise, investors are looking at whether an investment is consistent with and supported by credible policies of the issuers and markets to reach Net Zero commitments. Issuers, financial institutions and investors in emerging markets & developing economies will be significantly impacted but also could gain from a ‘virtuous circle’ of coherent policy support.

Investors are starting to look beyond the ‘micro’ green credibility of labeled fixed income instruments to see how well aligned they are with broader decarbonisation targetsEmerging mar...