Baku, Azerbaijan - The United Nations Sustainable Stock Exchanges (SSE) initiative convened market leaders at COP29 to promote sustainable finance as a critical tool in addressing the climate crisis. In collaboration with global regulators, exchanges, and financial institutions, the UN SSE hosted three major events over two days, focusing on harnessing capital markets to drive environmental sustainability.
Exchanges and climate action:
Financing the net zero transition: Blue Zone High-Level Event (in collaboration with IOSCO, 14 November 2024)
On Finance Day, November 14th, the SSE co-hosted a high-level event in the Blue Zone, in partnership with the International Organization of Securities Commissions (IOSCO). This gathering brought together senior policymakers, regulators, stock exchanges, and institutional investors to discuss the pivotal role of sustainable capital markets in mitigating climate risks and transitioning to a net zero emissions economy. Speakers from the following organizations participated in the discussion: Baku Stock Exchange, Bulgaria Stock Exchange, Carbon Disclosure Project (CDP), Clairy AI, Financial Regulatory Authority of Egypt, International Finance Corporation (IFC) International Organisation of Securities Commission (IOSCO), International Sustainability Standards Board (ISSB), the Organisation for Economic Co-operation and Development (OECD), the Spanish Financial Markets Authority and UNEP-FI. The deliberations focused on strengthening corporate climate disclosure, innovating climate finance and supporting markets on their journey to net zero. The event underscored the importance of regulatory cooperation in scaling up green investments and delivering on the goals of the Paris Agreement.
Speakers highlighted:
Jean-Paul Servais, Chair, IOSCO: "Climate transition plans are becoming increasingly used by companies. Last week, the IOSCO board approved a comprehensive report on transition plan disclosures. Comparable, consistent and reliable disclosures of transition plans may have a positive effect on market participants’ ability to make informed decisions, ultimately benefiting both investors and the integrity of the capital markets. IOSCO welcomes the ISSB’s announcement on developing educational materials in this area."
“The Bulgarian Stock Exchange and stock exchanges worldwide play a crucial role in advancing and, above all, stimulating green transformation. We encourage and support businesses to become more carbon-neutral" Mr Manyu Moravenov (CEO, Bulgaria Stock Exchange) said. “This is achieved through issuing bonds, and providing ratings, and indices that help strengthen the business ethics of companies, making it easier to identify those that are more sustainable."
“Emerging markets and developing countries urgently need funds to tackle climate challenges. IFC is helping by creating commercially viable climate projects, improving transparency, building local expertise, and mobilizing funding including via capital market instruments. By working with global standards and partnering with others, we aim to promote sustainable investment and support a low-carbon future for future generations.” - Ines Rocha, Regional Director, Europe, International Finance Corporation
“Regulated Voluntary Carbon Markets (VCM) have the potential to be a game changer in accelerating climate action and addressing the climate finance gap in developing countries. By establishing a structured, transparent, and credible framework, regulated VCMs can attract greater investment flows, foster trust, and encourage participation from both private and public stakeholders. This ensures that financial resources reach impactful climate projects that are essential for sustainable development, enabling countries to achieve their climate goals more effectively while bridging the financial divide.” -Mr Ahmed Rushdy, Executive Director, Financial Regulatory Authority
“Moving from billions to trillions will require an international drive to reorient the global financial system and companies to better align with climate goals. Net zero transition plans need to be at the heart of this transformation.” - Mathilde Mesnard, Deputy Director and OECD Coordinator for Climate and Green Finance
Exchanges and climate innovation:
Climate disclosure, carbon markets and net zero: Green Zone Panel Discussion (in collaboration with IOSCO, 14 November 2024)
The SSE convened a diverse panel of experts to explore the role of stock exchanges in supporting the net-zero transition through innovative financial instruments such as green bonds, sustainability-linked bonds, and carbon trading platforms. Speakers from the following organizations participated in the discussion: Bursa Malaysia, Chicago Mercantile Exchange (CME), the Global Reporting Initiative (GRI), IFC; ISSB, IOSCO; London Stock Exchange (LSE), Principles for Responsible Investment (PRI), S&P Global and Spanish Financial Markets Authority (CNMV). This interactive discussion provided a platform for climate advocates, financial leaders, and policymakers to exchange ideas on building resilient, climate-smart economies. Participants discussed case studies and best practices, offering insights into how capital markets can be leveraged to meet global climate targets and drive green growth in emerging economies.
Speakers noted:
“As Malaysia takes over Chairmanship of ASEAN in 2025, Bursa Carbon Exchange (BCX) together with our stakeholders have a key role in operationalizing the ASEAN Strategy for Carbon Neutrality through facilitating the development of a high integrity carbon market ecosystem.” - Dr Wei-nee Chen, Head Carbon Market, Market Operations, Bursa Malaysia
"As global economies continue to meet their carbon reduction targets, we are seeing a growing intersection between agriculture, energy and metals sectors. CME Group is working to offer a broad range of benchmark commodity products for managing evolving energy risks, including growing areas like battery metals, renewable fuels and carbon." - Owain Johnson, Global Head of Research, CME Group
Tamsin Ballard, Chief Initiatives Officer, PRI: “PRI is delighted to work in partnership with the United Nations Sustainable Stock Exchanges (UN SSE) initiative to amplify the role of exchanges as critical infrastructures in finance sector action on climate change. Together we can be powerful advocates for an enabling policy environment that facilitates responsible investment and a net zero, climate-resilient future.”
“At COP29, the stage is set for climate change actions that lead to real transparency and impact. GRI's forthcoming Climate Change and Energy Standards will empower organizations to make progress on crucial issues - cutting emissions, boosting renewable energy, and ensuring a ‘just transition' that leaves no one behind. Together, let’s turn bold ambitions into lasting impact!” - Cristina Gil White, Interim CEO GRI
“Emerging markets face significant climate risks and financing gaps that threaten their stability and development. Through the IFC's Beyond the Balance Sheet program, we aim to enhance climate disclosure and promote sustainability in these markets. By aligning climate-related disclosures with global standards and offering tailored guidance, we empower issuers to meet investor demand for reliable ESG data. Additionally, IFC innovates climate-aligned financial products and collaborates with financial service providers to accelerate the transition to net-zero emissions economies. Together with strategic partners, such as the IFRS Foundation and the UN Sustainable Stock Exchanges Initiative, we strive to create sustainable and climate-resilient futures in emerging markets.” - Ralitza Germanova, Corporate Governance Officer, Lead, Beyond the Balance Sheet Program, International Finance Corporation
Tamsin Ballard, Chief Initiatives Officer, PRI: “PRI is delighted to work in partnership with the United Nations Sustainable Stock Exchanges (UN SSE) initiative to amplify the role of exchanges as critical infrastructures in finance sector action on climate change. Together we can be powerful advocates for an enabling policy environment that facilitates responsible investment and a net zero, climate-resilient future.”
“Exchanges play an important role in the global transition to a sustainable economy by supporting transparency, creating sustainability-linked financial products, and developing stakeholder capacity. S&P Global is pleased to work with the UNSSE to provide robust analytics, market outlooks, and analytical opinions on sustainable capital markets and the energy transition.” - Kieran Dobson, EMEA Head Client Engagement S&P
“Stock Exchanges have a critical role to play in accelerating the transition to net zero. London Stock Exchange Group continues to work closely with the UN SSE on industry initiatives that drive standards in sustainability and climate data and disclosure. We have welcomed our collaboration with the UN SSE to build industry support for the global adoption of ISSB standards on an economy wide basis.” - Claire Dorrian, London Stock Exchange Group
Green Bonds for a Sustainable Future
Baku Stock Exchange Side Event (15 November 2024)
Alongside COP29, on November 15th, the UN SSE, in collaboration with the Baku Stock Exchange hosted an event at the Baku Stock Exchange, focusing on the role of green bonds in financing sustainable development. The event gathered international and national key stakeholders from stock exchanges, governments, and the private sector to highlight the opportunities and challenges in green bond issuance. Experts discussed the growing demand for green finance, the importance of standardization in bond issuance, and the potential for green bonds to mobilize capital towards renewable energy, energy efficiency, and climate resilience projects.
Sean Kidney, Chief Executive Officer, Climate Bonds Initiative and keynote speaker, set the stage for the panel discussion, highlighting:
“Global capital markets are chasing green, to hit $1 trillion a year in 2024. There are opportunities for all capital markets."
“Raising awareness and building capacity among the private and financial sector participants is the key in transitioning economies and building grounds for sustainable finance. I think holding such an event of scale in Azerbaijan would indeed contribute a lot to environmental awareness not only in the country but also across the frontier and emerging economies.” - Ruslan Khalilov, CEO, Baku Stock Exchange
Participating in the carbon market discussion
Following the launch of its carbon markets report at COP28 in 2023, the UN SSE continued its exploration of the topic by participating in other events at COP29 focusing on carbon markets. On November 14th, the UN SSE formed part of a panel discussion hosted by the International Organization of Securities Commissions (IOSCO), who introduced their Final Report on voluntary carbon markets (VCMs). On November 15th, the UN SSE moderated a panel discussion hosted by the World Green Economy Organization (WGEO) aimed at building capacity for participation in the implementation of carbon markets. Both sessions touched on the challenges faced by these markets (such as transparency and accountability of carbon market transactions) and the role of various stakeholders across the value chain to enhance the opportunities these markets can offer in the transition to net zero.
UN SSE's Work on Sustainable Finance
The UN SSE initiative works with global exchanges and capital market regulators to promote transparency, sustainability, and the achievement of the UN Sustainable Development Goals. Through its participation in COP29, the SSE continues to lead dialogues on sustainable finance, empowering market players to align their activities with the objectives of the Paris Agreement and contribute to a more equitable, low-carbon future.
