Transition Finance Tracker” -A quarterly report on financing the shift to a low-carbon economy
MSCI Sustainability Institute released the “Transition Finance Tracker” -A quarterly report on financing the shift to a low-carbon economy (April 2025)
Key findings:
1️⃣ Few companies align with a 1.5°C pathway… Only 12% of listed companies are aligned with limiting average global temperature rise to 1.5°C (2.7°F) above preindustrial levels.
2️⃣ … even as corporate ambition continues to rise. As of March 31, 2025, 14% of listed companies had climate targets validated by the Science Based Targets initiative (SBTi) — up nearly five percentage points from a year earlier.
3️⃣ Climate transition funds have high carbon intensity… for good reason. Their carbon intensity (tons of emissions per USD million in sales), at nearly 5x that of so-called Paris-aligned funds, reflects their stated mission of advancing decarbonization by investing in emissions intensive sectors.
4️⃣ Private assets are leaning in. Private-capital climate funds allocate 40% of their investments to the emissions heavy utilities sector—compared with just 8% for publicly listed climate funds—as of March 31, 2025.
5️⃣ Trade policy poses uncertainty. Climate funds across asset classes have significant exposure to the U.S., where tariffs could drive up the cost of clean-energy technologies.
6️⃣ Emissions and revenue growth have decoupled in advanced economies, but not yet in emerging markets. From 2015 to 2023, revenues of listed companies domiciled in developed markets grew 49%, while their emissions fell by nearly 25%.
7️⃣ Among the three countries that generate the most emissions — China, the U.S. and India — the U.S. has the least-carbon intensive electricity grid, with 43% of electricity generated from low-carbon sources, low carbon energy (solar, wind, hydro and nuclear) in its electricity mix, with 43%, compared with 37% in China and 16% in India.
8️⃣ While China dominates in both fossil fuel consumption and green innovation. Chinese-listed companies lead globally in patents for clean-tech innovation, while firms listed in India, Taiwan and China lead in clean-tech revenue growth.
9️⃣ Carbon trading plays an increasingly pivotal role in transition finance… The carbon credit market, which could soon be augmented by trading between countries, is channeling capital from developed to emerging economies and providing private-sector finance for nature.
🔟 Climate-related physical risk is rising. Factories, warehouses and other facilities belonging to listed companies and located in cities that span Miami, Osaka Pune, Sao Paulo, New York and Riyadh are in the top quartile of exposure globally to hazards such as flooding, extreme heat, wildfires and severe storms.
Source:
Temukan peta dengan kualitas terbaik untuk gambar peta indonesia lengkap dengan provinsi.
