Six years after the Paris Agreement and the world is still looking for enablers to accelerate the net-zero journey. Many see trade finance instruments as the next significant step but that requires accurate and structured data, robust reporting capabilities, and streamlined processes. Key leading players in the area tell Euromoney what is changing in the world of sustainable trade finance.

Javier Rodríguez Soler, BBVA’s global head of sustainability and corporate and investment banking, says an acquisition of Banco Sabadell would boost his division’s international standing. But BBVA is already eyeing a leading role in banking decarbonisation around the world, especially in the US. Partnerships with private equity companies, and investments in cleantech funds, are among the ways it is pursuing that goal.

As banks focus more on climate adaptation across their businesses, are they conceding that mitigation efforts are futile?

Funded by green bonds, decarbonized assets are driving emissions upwards in other sectors that supply the necessary raw materials and shipment services. A capital markets transition label ought to factor this in.

Banks need to start quantifying the legal risks of both climate action and inaction.

The London Stock Exchange Group’s head of sustainable finance strategic initiatives wants climate data to redefine the act of indexing.

The World Bank is issuing ‘outcomes’ bond structures for niche sustainability themes and with new financing mechanisms. Like blue bonds, they are probably going to need some rule-setting.

A team of once-public sector bankers and officials is launching a new private equity fund that aims to identify ‘climate winners’ from the transition to a decarbonized economy. It has identified key industries but its central thesis is regulation.

The global clubs charged with defining what pace of transition is both scientifically and politically acceptable are only as good-willed as their members.

Failure to mobilize the finance needed to meet the Paris Agreement will be devastating. As those flows to overleveraged countries and companies now stall, radical steps are needed.

Regulators are starting to take a more messaging-based approach to sustainable finance, but stopping greenwashing won’t automatically lead to a transition to net zero.

The 28th Conference of the Parties starts in Dubai tomorrow. Dubbed the finance COP, conflicting priorities could turn it into a fossil fuel investor roadshow.

Big banks are scrutinized on environmental, social and governance matters today as never before and they must often walk a tightrope between competing interests. Citi is no exception.

Data hoarding, ESG illiteracy and credit risk are roadblocks for regional banks looking to establish sustainable supply-chain financing programmes in the Gulf, just as COP28 approaches.

MUFG’s vast balance sheet has the potential to make a considerable difference to Japan’s net-zero ambitions. But the bank won’t be pulling back from polluters, arguing that money needs to flow to where emissions are, not away from them.

Farmland acquisition for transition agriculture has proved attractive to the climate-focused investment management franchises of large asset managers. Will real-asset investors follow suit?

With Article 6 mechanisms formalized, project-based compliance carbon markets could take over the emissions offsetting industry, leaving participants in the voluntary carbon market stranded.

Jordan Kuwait Bank has issued the country’s first green bond, a key milestone for sustainability driven capital investments in the country. But getting momentum going in the sector will be an uphill battle.

Standard Chartered’s new chief sustainability officer is not shying away from the reality of what the energy transition looks like in emerging markets.

Risk-sharing mechanisms could help drive confidence in the voluntary carbon market, but insurance products are scarce.

What will UBS’s post-merger sustainable finance strategy look like?

Solar thermal technology could offer cheap carbon-free heat for manufacturers. But tech developers are stuck in a financing gap between venture capital and project finance that will be harder to fill after recent bank failures.

The EU green bond standard is understandably broad. But because of this, the limits between sustainable and transition finance remain unclear.

The recent update to the green taxonomy and implementation of the SFDR RTS have received a mixed reception in parts of the EU.

Asset managers are spooked by mandatory disclosure regulations coming into force in January. This is good news for the anti-greenwashing campaign, not so much for biodiversity lovers.

COP27 placed green hydrogen production at the top of the global net-zero agenda. Banks want to fund this technology, but energy supply, cost and regulatory uncertainty are jeopardizing its future as the decarbonization solution for hard-to-abate sectors.

Strategies and financing need to be radically reassessed to achieve sustainability in a rapidly changing world.

Qatari banks are eager to demonstrate their commitment to sustainable banking amid growing public scrutiny of the environmental cost of hosting the World Cup.

The climate circus has packed up and left, with everyone disappointed and no one surprised. Some thoughts from a COP first-timer.

Saving the planet requires shutting down coal plants while also ensuring the livelihood of the people who depend on them. The ADB has a plan.