Breaking news – Sustainable Finance - May 2025

🇪🇺 The European Commission launched its SFDR call for evidence
The European Commission plans to revise the Sustainable Finance Disclosure Regulation (SFDR) by late 2025 to simplify sustainability reporting. The aim is to improve clarity, reduce greenwashing, and make sustainability-related financial products easier to understand and compare for investors. In that regard, it launched a call for evidence closing on May 30th.
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📉 NGFS publishes newest scenarios
The Network for Greening the Financial System (NGFS) released short-term scenarios on 7th May 2025. It is a publicly available tool offering a dedicated framework to analyse the potential near-term impacts of climate policies and climate change on financial stability and economic resilience for Central Banks and Supervisors.
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🇳🇵 Green Bond Market’s creation in Nepal
Nepal has officially entered the green bond market with Nepal Infrastructure Bank and NMB Bank issuing debut green bonds to finance renewable energy and clean transport projects. These issuances, approved by the Securities Board of Nepal, mark a significant step in aligning the country’s capital markets with global climate finance trends.
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📊 ECB Nature Stress Test
The European Central Bank is evaluating banks’ exposure to loan default risks linked to nature degradation, especially from water scarcity, which threatens over €1.3 trillion in assets. Stress tests and analysis are underway to assess financial stability impacts, with agriculture among the most vulnerable sectors. Reliable data and stronger reporting standards are deemed crucial for managing these growing nature-related financial risks.
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