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

Global Trading in INR Derivatives

Global trading in derivatives involving the Indian rupee (INR) has expanded significantly over the past decade, reflecting the currency’s growing role in international hedging and trading activity. According to the Bank for International Settlements (BIS) Triennial Central Bank Survey, the...

Response to FCA on Commodity Derivatives Clearing

On April 9, ISDA, the Commodity Markets Council Europe (CMCE), Energy Traders Europe (ETE) and FIA jointly responded to Chapter 7 of the UK Financial Conduct Authority’s (FCA) Quarterly Consultation CP26/8 on increasing the clearing threshold for commodity derivatives under the UK...

Response on EC’s SFR Proposal

On April 9, ISDA published technical comments on the European Commission’s (EC) proposed Settlement Finality Regulation (SFR) as it applies to designated EU systems and registered third-country systems. One significant concern is that the scope of insolvency protections provided to...