IFC-Facilitated Sustainable Banking And Finance Network Reports Major Progress In Advancing ESG Finance Across 72 Emerging Economies

The Sustainable Banking and Finance Network (SBFN), facilitated by the International Finance Corporation (IFC), has unveiled its 2025 Global Progress Report, showcasing significant progress in advancing sustainable finance across 72 emerging markets and developing economies. The findings reflect the growing global commitment to integrating environmental, social, and governance (ESG) principles into financial systems, despite ongoing economic and climate-related challenges.

According to the report, SBFN member countries have collectively issued $790.5 billion in thematic bonds, representing an impressive 94 percent of all emerging-market issuance. This demonstrates how developing economies are increasingly leveraging green, social, sustainability, and sustainability-linked bonds to mobilize private capital toward climate resilience and inclusive growth.

Since the previous report in 2023, SBFN members have launched 145 new sustainable finance frameworks, reinforcing risk management and transparency standards, particularly in relation to climate and nature-related risks. These frameworks have also been instrumental in promoting new sustainable finance opportunities and aligning national financial systems with international standards and best practices. By establishing clearer and more predictable regulatory environments, these reforms are helping attract both domestic and international investors to sustainable projects.

Highlighting the urgency of investment, Alfonso Garcia Mora, Chair of the SBFN Secretariat and IFC Vice President for Europe and Latin America & the Caribbean, said:“Emerging markets and developing economies need an additional $4 trillion annually—above current spending levels—to close critical investment gaps. This underscores both the magnitude and urgency of mobilizing finance for sustainable and resilient development. SBFN plays a crucial role in creating the enabling environment needed to address this challenge, and our member countries are taking action where it matters most. Nearly half have introduced measures to expand finance for smaller businesses, creating the conditions for them to thrive.”

The report also identifies key challenges hindering the advancement of sustainable finance in emerging markets. These include the urgent need to scale up adaptation finance, build institutional capacity among financial institutions, and enhance the availability and quality of reliable, comparable data to guide investment decisions. For the 2025 assessment, SBFN used its newly launched Data Portal, an interactive platform designed to collect, analyze, and monitor sustainable finance data across multiple sectors—including banking, securities, pensions, and insurance.

This digital tool provides a comprehensive overview of each member country’s progress, supporting transparency, knowledge-sharing, and more informed policy development across the global financial ecosystem. Through these efforts, SBFN continues to play a pivotal role in helping emerging economies transition toward greener, more inclusive, and resilient financial systems that support long-term sustainable development.