Gianleo Frisari
Senior Financial Sector Specialist

GianLeo is a Senior Financial Sector Specialist in the Capital Markets Development team at the World Bank, focusing on sustainable finance instruments and development of efficient and resilient capital markets, including sustainability-linked structures for social and nature goals. He joined the WB in 2024 from the IDB where he developed sustainable financial instruments for the public sector, such as sovereign governments in Latin America and the Caribbean.

GianLeo holds a Ph.D. in “Science and Management of Climate Change” from Ca’ Foscari University of Venice, graduated in Economics from Bocconi University in Milan and is a Chartered Alternative Investments Analyst (CAIA).

Sustainable Finance at a Crossroads: A Defining Moment for Emerging Markets

Sustainable finance is entering a more mature and strategic phase. Over the past decade, the rapid expansion of labelled instruments, disclosure frameworks, taxonomies, and corporate commitments has helped establish sustainability as a core dimension of financial decision-making. The current moment reflects a deeper evolution: the alignment of financial systems with climate and nature objectives is increasingly viewed as integral to economic resilience, fiscal sustainability, and long-term growth.

This transition is unfolding in a context where risks are becoming more visible and more material. Climate-related shocks, ecosystem degradation, and resource pressures are shaping macroeconomic conditions, sovereign risk profiles, and corporate performance. In this environment, sustainability becomes progressively embedded in how countries and companies assess risk, allocate capital, and plan for the future.

This dynamic is particularly important for emerging markets and developing economies. Many EMDEs combine significant exposure to climate and nature risks with strong development needs and investment opportunities. They are central to global mitigation, adaptation, and conservation efforts, as well as to future infrastructure expansion and urbanization. At the same time, their financial systems operate within more constrained environments, characterized by higher capital costs, evolving regulatory frameworks, and varying levels of institutional capacity. This combination places EMDEs at the heart of the sustainable finance agenda: as key contributors to global solutions and as priority destinations for investment.

In this context, the role of blended finance, multilateral development banks, concessional finance and donors continues to evolve. These actors are helping to translate sustainability priorities into investable opportunities through guarantees, credit enhancement, technical assistance, and platform approaches. By improving risk allocation and strengthening project pipelines, these actors support the mobilization of private capital and enhance the bankability of investments across sectors such as energy, transport, agriculture, water, and natural capital. Their contribution increasingly lies in enabling markets to function more effectively and in supporting countries as they implement their transition and development strategies.

At the same time, the architecture of sustainable finance is continuing to take shape. International standards, disclosure frameworks, and classification systems are consolidating, providing a clearer foundation for transparency, comparability, and investor confidence. Sustainability-related data is increasingly integrated into financial reporting processes, supported by expanding assurance practices and advances in methodologies. Across countries, regulatory frameworks are evolving to reflect national priorities while remaining broadly aligned with emerging international norms.

This ongoing development reflects a constructive policy dialogue on how to balance ambition, credibility, and usability. As frameworks are implemented across a wide range of markets, emphasis is being placed on proportionality, sequencing, and interoperability. This approach supports broader participation by financial institutions, corporates, and smaller market actors, including in EMDEs, and helps ensure that global standards can be applied in ways that are both robust and practical.

International capital flows mirror this broader evolution. Sustainable finance markets have reached significant scale and continue to expand in depth and sophistication. Green bonds remain a core instrument, supporting investment in renewable energy, energy efficiency, and clean transport, while sustainable bonds and other use-of-proceeds instruments complement this landscape. At the same time, attention is increasingly turning to areas such as transition finance, adaptation, and nature-related investment, which are essential to achieving comprehensive sustainability outcomes.

These segments are developing progressively, supported by greater clarity in definitions, improved methodologies, and growing investor interest. Transition finance is helping to frame credible pathways for emissions-intensive sectors, while adaptation and resilience investments are gaining visibility as essential components of economic stability. Nature finance is also moving forward, reflecting the growing recognition of the economic value of ecosystems and biodiversity.

Importantly, practical experience is expanding. Transactions across different regions, including in emerging markets, are demonstrating that innovative instruments can be structured in ways that meet both investor expectations and development objectives. These examples highlight the importance of strong design, clear performance metrics, and effective risk-sharing mechanisms. They also illustrate how new financial structures can be adapted to a wide range of country contexts and sectoral needs.

Looking ahead, the continued evolution of sustainable finance will be shaped by implementation. The foundations are increasingly in place: a growing set of standards, a maturing market, and a pipeline of innovative instruments. The focus now is on applying these tools at scale, in ways that support resilience, inclusion, and long-term value creation. This includes ensuring that sustainable finance reaches the sectors and geographies where it can have the greatest impact.

In this respect, emerging markets and developing economies will remain central to the global agenda. Their experience will help define how sustainable finance delivers in practice—by aligning financial flows with country priorities, supporting sustainable growth, and strengthening the resilience of economies and communities.