The rapidly evolving policy landscape continued to dominate the news in 2023, with EU announcements creating several of the most-read articles on Environmental Finance.
The other hottest topics of the year were innovation in the sustainable bond market and the growing investor focus on natural capital, in particular biodiversity.
The intervention of policymakers and regulators has underpinned interest in sustainable finance in recent years, as a growing number of jurisdictions begin to mandate the reporting of sustainability-related information and crack down on greenwashing claims.
The EU has put itself in the forefront of the action, however, meaning that its edicts are particularly closely watched – as evidenced by the fact that its work to develop a green bond standard, ESG ratings regulation, a taxonomy of sustainable activities and a disclosure regime for investors feature in the top 10 most-read articles.
However, as my colleague Michael Hurley writes today, 2024 may see a slowdown in sustainability-related policy making, as numerous countries go to the ballot box, and commitment to tackle climate change is challenged by the 'green backlash' and the rise of populism.
The sustainable bond market continues to be a core part of Environmental Finance's coverage. The most-read article covered Italian energy firm Enel issuing an innovative sustainability-linked bond with targets linked to capital expenditure aligned with the EU's taxonomy.
Other well-read articles include a warning that up to 30% of all sustainability-linked bond (SLB) targets on the market are "on track to fail", the World Bank issuing a $50 million 'outcomes-based bond' linking its coupon payments to verified carbon credits generated by a water purification project, and Japan's plans for a sovereign transition bond.
Meanwhile, the list of top 10 articles demonstrates how natural capital continued to embed itself as a core topic in the sustainable finance landscape in 2023.
There was much anticipation surrounding the launch of the Taskforce on Nature-related Financial Disclosures' (TNFD) recommendations in September.
Please contact peter.cripps@environmental-finance.com if you have any views about topics we should write more about in 2024.
The top 10 most-read articles in 2023
- Enel issues 'ground-breaking' alternative to sustainability-linked green bonds
- TNFD reveals first 14 core disclosure metrics
- EU Green Bond Standard: Provisional deal on landmark regulation agreed
- EU publishes ESG ratings regulation, taxonomy extension
- WWF reveals sectors with highest biodiversity risk
- EU mulls scrapping Article 8, 9 distinction and creating sustainability 'categories'
- Biodiversity fund assets triple in 2022 to nearly $1bn
- 30% of sustainability-linked bond targets 'on track to fail'
- World Bank issues 'unique' carbon credit-linked bond
- Japan's 'green transformation' bond: A test case for transition finance
