09/2024 – Sustainable Financial Markets
ZEW Monthly // 2024
Financial markets are the backbone of the global economy, directing capital flows and resources to where they are needed. However, climate change and demands for greater environmental and social responsibility are presenting challenges to monetary policy. To pave the way for a sustainable future, businesses and regulators must find smart ways to channel capital effectively into the transformation of our economy.
This edition of our ZEW Monthly on “Sustainable Financial Markets” focuses on three key aspects that shape the future of financial markets. First, we examine the potential of European securitisations within the framework of the capital markets union. A ZEW analysis shows that their current market potential is still significantly smaller than expected. We also look at the EU Green Bond Standard, where action is needed to improve its credibility in order to further strengthen the market for sustainable bonds. Finally, ZEW has developed a new standard for time-consistent CO2 reporting, ensuring company data is unambiguous and comparable within each industry.