Global Green Finance Index launched
The new Global Green Finance Index (GGFI) has been launched by Z/Yen and Finance Watch, ranking the world's financial centers according to perceptions of the quality and depth of their green finance offerings.
In this inaugural edition (GGFI 1), financial centers in Western Europe outperformed those in other regions, according to a release. The full report can be downloaded here.
The findings include:
- The leading green financial centers in each region are London, San Francisco, Shanghai and Shenzhen, Johannesburg and Cape Town, Mexico City and Moscow.
- Paris, Frankfurt and New York lead the centers most cited as likely to become more significant over the next two to three years.
- Financial centers that have shown leadership in green finance policy are expected to gain in significance, with Paris at the top of this list.
- In some countries, smaller centers with a strong green focus such as San Francisco and Hamburg outperformed larger centers such as New York and Frankfurt.
- The rankings are liable to change in future editions, as they are based on tightly clustered scores in the range of 322-437 points out of 1,000.
- The level of scores suggests that green finance can grow substantially in size and quality.
- Supportive policy measures and investor demand are seen as the main drivers of green finance.
- Renewable energy investment, green bonds and sustainable infrastructure finance were rated as areas of high impact on sustainability and of high interest to respondents.
- Disinvestment from fossil fuels was rated as high impact on sustainability but low interest to respondents, suggesting room for policy change.
"Ratings and indexes are important instruments to enable effective communication of relative and absolute progress, as well as encouraging a race to the top, and a healthy debate of what constitutes success and how it can best be measured,” said Dr. Simon Zadek, co-director of UN Environment Inquiry into the Design of a Sustainable Financial System. “In this spirit, Finance Watch and Z/Yen have taken us all to the next level in providing us with the first globally applicable index of developments in greening the world's financial centers."