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

Climate Risk Scenario Analysis Phase 4

Climate scenario analysis has become a useful tool for banks and financial institutions to understand the short- and long-term financial risks associated with climate change, particularly in light of evolving regulations and an increased emphasis on reducing the impact of...

ISDA & EMTA Market Practice 45

ISDA & EMTA jointly published the attached updated market practice regarding the determination of barrier events for Brazilian Real non-deliverable continuously monitored barrier option transactions.

Episode 54: A Modernization Agenda

ISDA’s chair Amy Hong sets out priorities for the association in 2026 and the important role that technologies like tokenization and artificial intelligence will play in modernizing derivatives markets. Please view this page via Chrome to access the recording.