At COP15, almost 200 countries reached an agreement to halt and reverse biodiversity loss by 2030 and achieve recovery and restoration by 2050. The deal should speed adoption of the Taskforce on Nature-related Financial Disclosures (TNFD) framework to assess and disclose nature-related risks and opportunities, while accelerating development of nature-positive financial markets.

Amid fears of global recession and USD strength, prices for energy transition metals have subsided in 2022… although transition planning and sustained expansion in renewable energy capacity will underpin demand.

Climate finance flows are on track to reach a fresh high of $915 billion in 2022; Sustained policy support—amid heightened concerns over energy security—should accelerate the expansion in renewable energy capacity, while increasing energy-efficiency related investment.

Despite growing concern, sovereign defaults have been limited this year, with most triggered by geopolitical tensions; China’s government debt reached an all-time high of 77% of GDP; A softer U.S. dollar—amid expectations of a policy-induced slowdown in U.S. growth—should provide some breathing room for EM borrowers.

With funding costs on the rise across emerging markets, having strong investor relations (IR) programs is more important than ever to help ensure access to affordable and sustainable capital flows.

Climate finance and ESG investing were top themes at our IIF Annual Membership Meeting and the IMF/WB Annuals; Energy security concerns, inflationary pressures and budget strains are jeopardizing timetables for climate goals.