Derivatives in Sustainable Finance: Enabling the Green Transition

Today, the European Capital Markets Institute (ECMI) of the Centre for European Policy Studies (CEPS) published a new paper on the role of derivatives in sustainable finance.

Over the past years, sustainability has risen in scope and importance on the agenda of policymakers. In Europe, this has been translated to the EU Sustainable Finance Action Plan. Derivatives markets can play a significant role in the context of the European Green Deal and the transition towards a low-carbon economy.

This report, which was published in cooperation with ISDA, highlights how derivatives markets can contribute by:

  • Enabling the EU to raise and channel the necessary capital towards sustainable investments;
  • Helping firms hedge risks related to environment, social and governance factors;
  • Facilitating transparency, price discovery and market efficiency; and
  • Contributing to long-termism.

Documents (1) for Derivatives in Sustainable Finance: Enabling the Green Transition

ISDA Response on Hedge Accounting Guidance

On August 14, ISDA responded to an exposure draft from the Financial Accounting Standards Board (FASB). ISDA broadly supports the FASB’s proposed targeted improvements to hedge accounting, including allowing interest rate hedging of held-to-maturity (HTM) debt securities, recognizing all Secured...

Joint Response to EBA Consultation

On August 12, ISDA and the Association for Financial Markets in Europe (AFME) responded to the European Banking Authority’s discussion paper on certain taxonomy key performance indicators (KPIs) and other aspects of the Disclosures Delegated Act  under Article 8 of...

Response to JSCC on Clearing Fund Consolidation

On August 12, ISDA responded to the Japan Securities Clearing Corporation’s (JSCC) consultation on its proposal to consolidate clearing fund consumption, calculation and deposit segmentation across six clearing qualifications under the Financial Instruments and Exchange Act. ISDA members broadly support...

Response on CSDD Guidelines

On August 6, ISDA responded to the European Commission’s (EC) consultation on due diligence guidelines under the Corporate Sustainability Due Diligence Directive (CSDDD). While ISDA acknowledges that model contractual clauses can be a helpful resource for in-scope companies, there are...