Using a global dataset of over 840,000 equity, bond and syndicated loan investment banking deals, we build the fossil fuel investment brokerage profile of financial centres worldwide between 2000 and 2018. We also study whether city-level fossil fuel divestment commitments and country-level green banking policies impact the profile of fossil fuel financial centres over our study timeframe. We find that several financial centres shift their fossil fuel investment brokerage profiles substantially, including the asset classes in which they are active. However, we do not find any evidence that this is driven by city-level divestment commitments. In contrast, we find that fossil fuel investment banking brokers situated in financial centres exposed to voluntary green banking policies reduce their fossil fuel financing. This is driven by foreign brokers whose behaviour appears to signal an anticipation of forthcoming mandatory green finance policies.
ClimateWorks Foundation, Science Foundation Ireland [award number 19/FIP/AI/7539];, International Network for Sustainable Financial Policy Insights, Research, and Exchange (INSPIRE, Irish Research Council [grant number CLNE/2018/202], European Union’s (EU) Horizon 2020 Marie Skłodowska-Curie [grant agreement number 713279(CLNE/2018/202)];, European Research Council(ERC) under the European Union’s Horizon 2020Research and Innovation Programme [grant number681337/825215, City Net Project and Fintech Project grant No 825215
ID Code:
28071
Deposited On:
09 Feb 2023 12:39 by
Fabiola Schneider
. Last Modified 09 Feb 2023 12:39