Climate-focused investors are turning to emerging markets

It is no secret that the transition finance landscape has become a rockier terrain to navigate over the last 18 months. The culture of climate hostility fostered by the US administration has inevitably affected the appetite of financial institutions globally for pursuing the transition. Banks, asset managers and financial services providers alike have scaled back their sustainability efforts, lest they lose business with the world’s largest economy.

This has been disappointing, but not surprising. However, many financial institutions are staying the course. Pension funds, sovereign funds, ratings agencies and multilateral development banks – institutions that are focused on the long term as well as the immediate political environment – remain convinced of the need to fund the transition to a sustainable global economy. As such, climate-focused investors are starting to look elsewhere.

Emerging markets are set to benefit most from this shift. This edition of OMFIF’s Sustainable Policy Institute Journal examines the opportunities that are being created by these changing tides in sustainability. Featuring articles on Asia Pacific, Latin America, Africa and the Middle East, it looks at the inducements for investors to enter these markets, as well as the opportunities for the regions being considered.

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