The China-EU taxonomy initiative's co-chair Ma Jun revealed that an expanded version will be launched at the upcoming climate summit, with hopes to add large economies like Brazil and Indonesia in the future and become “a globally accepted benchmark for taxonomy development”.
The bonds, focused on green projects, can help programmes in developing countries secure lower-cost financing, but competition and sustaining interest remain challenges.
Microfinance institutions in Cambodia, accused of predatory lending, are pivoting to green bonds while borrowers, burdened by debt and climate impacts, struggle to survive.
The unregulated product is increasingly offered by ESG raters to gauge how “green” a bond or loan is. But “overly positive” reviews challenge their ability to bring credibility to the trillion-dollar sustainable debt market, experts say.