Advancing Sustainable Finance and Disclosure at COP29: Strengthening Climate Action

Baku, Azerbaijan, November 14, 2024 - IFC's Regional Director for Europe, Ines Rocha, participated at Exchanges and Climate Action: Financing the Net Zero session hosted by the United Nations Sustainable Stock Exchanges Initiative (UN SSE) in partnership with the International Organization of Securities Commissions (IOSCO).

This session brought together senior policymakers, regulators, stock exchanges, and institutional investors to discuss the pivotal role of sustainable capital markets in mitigating climate risks and transitioning to a net zero emissions economy. Speakers from the following organizations participated in the discussion: Baku Stock Exchange, Bulgaria Stock Exchange, Carbon Disclosure Project (CDP), Clarity AI, Financial Regulatory Authority of Egypt, International Finance Corporation (IFC), International Organization of Securities Commission (IOSCO), International Sustainability Standards Board (ISSB), the Organization for Economic Co-operation and Development (OECD), the Spanish Financial Markets Authority, and UNEP-FI.

The deliberations focused on strengthening corporate climate disclosure, innovating climate finance and supporting markets on their journey to net zero. The event underscored the importance of regulatory cooperation in scaling up green investments and delivering on the goals of the Paris Agreement.

As the private sector arm of the World Bank Group, IFC plays a crucial role in mobilizing private capital for sustainable finance in emerging markets. In this connection, IFC Regional Director Ines Rocha highlighted several key points.

Dual Approach to Sustainable Finance: 

IFC works on two main fronts - supporting regulators and stock exchanges in developing sustainable finance frameworks and taxonomies, as well as directly engaging with private sector clients. This dual approach allows IFC to drive progress on both the policy/regulatory side as well as the implementation side with companies.

Capacity Building: 

IFC recognizes the importance of capacity building and education for both financial sector participants and companies in developing markets. This includes initiatives like the "Beyond the Balance Sheet" Program, which provides knowledge and capacity building on applying ISSB standards in partnership with the IFRS Foundation and UN SSE. The Program looks into further enhancing the board of directors understanding on climate governance and sustainability disclosure and supporting companies to improve their sustainability and climate disclosure to mitigate climate risks and facilitate access to capital.

Mobilizing Private Capital: 

As a major issuer of green bonds, IFC is actively working to support private sector clients in accessing sustainable finance instruments. This involves helping companies in structuring and issuing green bonds, sustainability-linked loans, and other sustainable finance products.

Collaboration and Partnerships:

IFC emphasizes the need for close collaboration with regulators, stock exchanges, and other international organizations to drive progress on sustainable finance. Partnerships, such as the one with the Central Bank of Azerbaijan on developing a green taxonomy, are crucial to align policies and enable market development.

"Emerging markets and developing countries urgently need funds to tackle climate challenges. IFC is helping by creating commercially viable climate projects, improving transparency, building local expertise, and mobilizing funding including via capital market instruments. By working with global standards and partnering with others, we aim to promote sustainable investment and support a low-carbon future for future generations.” - Ines Rocha, Regional Director, Europe, International Finance Corporation.