The World Bank has published a guide outlining the processes that financial regulators can use to develop a green taxonomy in order to scale up green finance.
The publication Developing a National Green Taxonomy: A World Bank Guide will help regulators in emerging economies who seek to ‘green’ their countries’ financial systems.
According to the bank, the lack of clarity about which activities and assets can be defined as green has long posed a barrier to scaling up green finance. A green taxonomy identifies the activities or investments that deliver on environmental objectives, helping drive capital more efficiently toward priority environmentally sustainable projects.
The guide can help banks and other financial institutions originate and structure green banking products (e.g. loans, credits, and guarantees). It can also help investors identify opportunities that comply with sustainability criteria for impact investments.
“As a pioneering issuer of green bonds, the World Bank has played a key role in developing sustainable capital markets and facilitating innovative transactions,” said Anshula Kant, Managing Director and World Bank Group Chief Financial Officer. Read more…
