The World Bank has published a guide outlining the processes that financial regulators in emerging economies can use to develop a green taxonomy. The publication, Developing a National Green Taxonomy: A World Bank Guide, will help regulators identify the activities or investments that deliver on environmental objectives and help drive capital more efficiently toward priority environmentally sustainable projects.
The World Bank has published a guide outlining the processes that financial regulators in emerging economies can use to develop a green taxonomy. The publication, Developing a National Green Taxonomy: A World Bank Guide, will help regulators identify the activities or investments that deliver on environmental objectives and help drive capital more efficiently toward priority environmentally sustainable projects.
Published by the World Bank, the guide is intended for helping banks, financial institutions originate, and structure green banking products and investors identify opportunities that comply with sustainability criteria for impact investments. As emerging economies have diverse needs and contexts, the guide details ways to develop a taxonomy based on the environmental objectives of a country.
The World Bank prepared this guide to develop a common language on environmental issues by the financial sector and to support decisions related to climate risk in fundraising, lending, and investment activities. A key recommendation is for regulators to provide a technically sound justification for the activities and investments considered green.
The recommended approach is based on the World Bank Group’s experience in supporting similar initiatives in several countries, including Colombia, Malaysia, Mongolia, and South Africa. The guide includes an overview of existing green taxonomies, including those developed by Bangladesh, China, Mongolia, the European Union, and the Climate Bonds Initiative.
Click here to read the original article published by the World Bank.
Please give your feedback on this article or share a similar story for publishing by clicking here.
