Market & Regulatory Highlights | Q2

The full article is available on ISS-Corporate’s resources page.  

Sustainable finance markets continue to evolve across regions, with policymakers, regulators, and market participants focused on scaling transition finance, improving market integrity, and mobilizing capital for climate and sustainable development goals. Recent developments highlight growing regulatory support for sustainable finance instruments, increasing attention to credible transition pathways, and continued investment momentum in emerging markets. 

Regulatory Support for Sustainable Finance Markets 

In a positive development for sustainable debt markets, the Australian Securities and Investments Commission (ASIC) announced an extension of its class no-action position relating to the provision of second party opinions (SPOs) for financial products made available exclusively to wholesale clients through June 2028. The decision provides ongoing regulatory clarity for issuers seeking external reviews of sustainable finance frameworks and transactions. 

At the same time, the UK is advancing efforts to accelerate investment in the low-carbon transition through its draft Transition Finance Guidelines. The framework is designed to help companies develop credible transition plans capable of attracting institutional capital. Complementing the guidelines are sector-specific financing playbooks, including newly launched guidance on long-duration energy storage—an important enabler of decarbonization across multiple industries. Together, these initiatives seek to establish practical pathways for scaling transition finance across UK sectors through 2029 while supporting international capital flows. 

Beyond regulatory developments, governments and stakeholders are increasingly focusing on the economic and social dimensions of the energy transition. This was evident at the First Conference on Transitioning Away from Fossil Fuels, co-hosted by the Governments of Colombia and the Netherlands in Santa Marta, Colombia. The gathering brought together ministers, policymakers, scientists, and civil society representatives from nearly 60 countries to discuss practical approaches to economic diversification and a just energy transition. Notably, discussions centered on actionable solutions rather than high-level commitments. A full report with the conference outcomes can be found on the official Transitioning away from Fossil Fuels website.