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The Janus Henderson Decarbonization EM Index analyses the degree and speed of forward progress on decarbonization efforts across emerging markets. The first in-depth report based on the newly developed Index covers Mexico, Central America and the Caribbean, and South America.
At COP26 in Glasgow in November 2021, Janus Henderson convened a panel of industry experts on the topic of Decarbonization in Emerging Markets. Given the panel’s concluding remarks, which focused on exploring the combination of successful initiatives being taken, policy frameworks, and financing need, the firm created an index to track all three of these issues via objective, third-party, open sources.
The Janus Henderson Decarbonization EM Index is an equally weighted index of scores given to three trends: Renewable energy as part of total energy final consumption, net zero target dates established as part of the Paris Agreement-mandated National Determined Contributions (NDCs), and climate bond issuance to date. Each of these trends is tracked following a proxy indicator that we believe can help track the degree and speed of forward progress on decarbonization trends now and in the future.
An in-depth report analyzing the results of the index for Mexico, Central America and the Caribbean, and South America is now available. The Decarbonization EM Index for the region stands at 19.04 as of the end of 2021 given the following:
In several instances across the region, the natural resource endowments of countries have been already tapped to significant effect to generate renewable power. Solar and wind projects are established at scale in countries such as Brazil, Chile and Uruguay. Long-standing efforts to generate electricity via hydro-electric power plants – often as part of a directed national industrial strategy, as in Paraguay – further contribute to the non-fossil fuel sources of electricity in the region. Finally, biomass is a source of renewable power that several countries, large and small, have directed significant resource toward, especially in Central America and in Brazil.
Additional reports covering other regions’ performance will be released throughout 2022.
1 Source: Janus Henderson Investors, Climate Bond Initiative, as at Quarter 4 2021.