Central Banks are putting forwards unconventional monetary policies to fight cliamte change.
For more than a decade, governments and businesses progressively issued conventional green and sustainable fixed income securities to address social and environmental issues. According to the Climate Bond Initiative, their issuance is on track to reach $1 trillion in issuance by 2023. However, there is growing scepticism regarding the market's integrity. Is it making a meaningful contribution to reducing sustainability and climate risks? Unfortunately, green labels do not seem to be an effective signal for identifying sustainable improvers.
Policy areas:
Global financial safety net and post-pandemic challenges to financial stability
Governance and coordination of international financial institutions
External debt, financial sustainability and debt relief of developing and low-income countries
Transparency and corruption in international capital flows
Digital Money and Finance Public and private debt sustainability: global monitoring and coordinated adjustment strategies
Evolution and coordination of central bank strategies and global financial cycle
This study is an initiative of the ISPI’s Centre on Infrastructure, promoted with the knowledge partnership of McKinsey & Company. It analyses the importance of economic infrastructure and how to finance and develop it. Economic infrastructure is the backbone that, in many cases, crosses the borders of political geo- graphy and defines the space supporting the movement of goods, services, people and their ideas.
What’s going on in the European arena? Regulators, trading venues, market participants, financial and commodity analysts and data reporting agencies are all debating on the legal and operational implications of the various recent financial and energy regulations in the EU, whose implementations are already in effect either fully or partly. The three burdensome regulations flapping commodity firms are REMIT (Regulation on Energy Market Integrity and Transparency), EMIR (European Market Infrastructure Regulation), and MiFID II (Markets in Financial Instruments Directive ).
The G20 forum is a relatively new addition to the global governance architecture. The group has no secretariat or treaty, and instead relies on consensus agreement of its membership of 19 of the world’s largest developed and emerging economies and the European Union. G20 countries ‘sign up’ to commitments voluntarily with some peer review processes. When the G20 cooperates and countries implement policy in tandem, the forum can act as the ‘steering committee’ for the global economy.