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China, emerging markets suffering shortfall in sustainable financing, Standard Chartered says
- Nearly two-thirds of global investors are directing sustainable investments to developed markets
- China’s commitment to reach carbon neutrality by 2060 could help fuel increase in investment, according to Standard Chartered’s sustainable finance head
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China and other emerging markets are seeing a shortfall in sustainable financing as global investors overwhelmingly focus their asset allocations on Europe and other developed markets, which threatens the ability of the United Nations to reach its sustainable development goals in the next decade, according to Standard Chartered.
But, China’s commitment last month to achieve carbon neutrality by 2060 could be a “game changer” for sustainable financing, said Daniel Hanna, global head of sustainable finance at Standard Chartered.
“We believe the markets that offer the greatest opportunity to leapfrog to low-carbon technology, to move to more sustainable business practices and create good green sustainable jobs, are in the emerging markets,” Hanna told the Post. “The sad reality is, currently, they are not getting the financing required.”
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Nearly two-thirds of investors are directing their sustainable financing investments to Europe and North America, according to a new Standard Chartered survey of big investment managers responsible for a combined US$50 trillion in assets under management.
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Sustainability: Green bonds to help drive China's push towards carbon neutrality
Sustainability: Green bonds to help drive China's push towards carbon neutrality
About 22 per cent of their investments are being directed to Asia, which include developed markets in Japan and South Korea, the report found.
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