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Which countries are leading in the Green Financing Policy?

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The leading countries pioneering green finance policies and their progress are:

  • China: Since 2016, a five-year plan for building a green financial system has been adopted. By 2020, China will also account for over 16% of total green bond issuance and 78% of emerging market insurance, as per the Climate Bonds initiative.
  • France: In 2015, the Energy Transition Law mandated listed companies and institutional investors to disclose climate risks. Over 60% of green bonds are issued in Europe.
  • United Kingdom: The first G20 country to make Task Force on Climate-related Financial Disclosures (TCFD) aligned disclosures mandatory by 2025, covering premium-listed companies, banks, insurers, etc.
  • The European Union’s Sustainable Finance Disclosure Regulation and Green Bond Standard enforce climate-related disclosures and define green asset taxonomies. $149 billion in new green bonds were issued in 2020, as per Climate Bonds data.
  • Singapore: In 2019, the Green Finance Action Plan was announced. The country also issued $6 billion in green bonds in 2020, a three-fold rise over 2019 as per Singapore Exchange data.
  • Indonesia- In 2014, the Sustainable Finance Roadmap was launched, focusing on ESG integration and disclosures. The largest green sukuk (Islamic bond) market globally is the Indonesia Stock Exchange.
  • A Canada-Sustainable Expert Panel was established due to corporate climate disclosures aligned with TCFD and published proposals for a Canadian green bond.

Source:- Internation Institute of Green Finance

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