In a ranking of the greenest financial center in the world, European towns continue to dominate. As Europe tops the worldwide ranking on global green finance index, six of the top 10 locations are in Western European cities with London taking the top spot.
On April 20, 2023, the Global Green Finance Index (GGFI 11) issued its eleventh edition. GGFI 11 assesses green finance products from 86 significant financial hubs worldwide.
For those responsible for making investment and policy decisions, the GGFI is a useful resource for understanding the evolution of green finance. The centers that do well in the GGFI are often those who pledge to make environmental changes throughout the economy in addition to specifically in finance.
Stockholm and Geneva had notable jumps from the previous year’s index of five and three spots, respectively. Other than the European cities, US cities took up the remaining top 10 positions.
These include Los Angeles, Washington, D.C. and San Francisco, as well as New York, which came in second. While Western European and US centers occupy the top 10 spots in the ranking, it is important to note how recently US centers caught on and how quickly Asian countries are rising.
In the most recent issue of the GGFI, experts noticed the increased interest in carbon trading and carbon pricing as a means of addressing the crucial problem of greenhouse gas emissions, especially in light of the criticism of the current ESG analytics systems.
The three green finance sectors with the greatest effect, according to those who responded to the GGFI poll, are sustainable infrastructure finance, carbon markets, and energy-efficient investment.
The rising emphasis on carbon pricing and trading is reflected in the fact that carbon markets are now ranked as one of the major elements influencing climate change.
Along with international initiatives, policy, and regulatory frameworks are still seen as the main force behind the growth of green finance.
As Europe tops the worldwide ranking on global green finance index, it serves to further emphasize the significance of international collaboration and policy in creating the conditions necessary for the development of green finance.
