Third ranking of green finance centres is now underway

Channels: ESG, Markets, Policy

Companies: Finance Watch, Long Finance, MAVA Foundation

The views of finance professionals across the world are again being sought to help compile the third edition of the Global Green Finance Index (GGFI)

The index, first launched in March 2018, aims to rank the size and quality of the green finance offerings of the world's financial centres. A second edition was issued in September and the third is due to be published in March 2019.

The index is based on the opinions of financial professionals alongside quantitative data. It was developed by Brussels-based NGO Finance Watch and the London-based Long Finance initiative with support from Switzerland's MAVA Foundation.

Its aim is to encourage cities to become greener, compare their performance with their peers, improve policy makers' understanding of the drivers of green growth, and assist them in shaping the financial system to support sustainability goals.

The GGFI defines 'green finance' as "any financial instrument or financial services activity – including insurance, equity, bonds, commodity and derivatives trading, analytical or risk management tools – which results in positive change for the environment and society over the long term (sustainability)".

Examples of the objective factors used in assessing cities' green credentials are:

  • Banks' ratio of green energy to high carbon energy lending
  • Climate-aligned bond issuance or listings as a fraction of total
  • Green equity indices
  • Air quality data
  • Carbon dioxide emissions per capita
  • Length of metro network
  • Climate impact vulnerability
  • Energy intensity of GDP
  • Sustainable Cities Index
  • Quality of Living City Rankings
  • Corruption Perception Index

London topped the rankings in the first edition of the index but slipped to third in GFFI 2, while Amsterdam jumped from fourth to first place. Full details of GFFI 1 and GFFI 2 can be found here

Environmental Finance readers are invited to submit their opinions on any financial centres in which they have done business or of which they have knowledge. To register your views, please click here

Graham Cooper