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Stone Harbor Investment Partners

Why impact investing in emerging markets is more relevant than ever

5. June 2025

Emerging markets now account for 65% of global CO₂ emissions. Without their progress, global decarbonisation efforts will fall short.

Why impact investing in EMs is more relevant than ever

A new report from Stone Harbor Investment Partners explores the growing significance of impact investing in emerging markets (EM). The report underscores the increasing demand for sustainable investment options and the role of green and sustainability bonds in funding projects that address climate change and promote sustainable development.

The asset manager notes that global decarbonisation remains uneven. While CO₂ emissions in developed markets peaked around 2010 and have since declined, emissions in EMs are still rising. This trend is particularly significant, as emerging markets already account for 65% of global emissions—and their share continues to grow. “The conclusion is clear: meaningful progress towards decarbonisation globally is not possible without significant progress in EMs,” the report states.

Read the full report here.