‘Target Setting for Capital Market Activities’ is a report from the Net-Zero Banking Alliance (NZBA) that explores the differences between financed and facilitated emissions, target design options, and implementation considerations for banks setting their own independent targets for the capital markets area of their business.

The global capital markets saw debt and equity issuances totalling USD 25.6 trillion in 2023 and can play an increasingly important role in providing finance for climate solutions.

The report summarises the findings of a working group composed of 22 NZBA members on the challenges and potential solutions in this emerging area:

  • It aims to support NZBA member banks in developing independent net-zero targets for the capital market activities that are now included in the scope of the Guidelines for Climate Target Setting for Banks – Version 2.
  • It contributes to the interoperability of global approaches by detailing how capital markets activities included in the Partnership for Carbon Accounting Financials (PCAF)’s Facilitated Emissions Standard may be included in banks’ targets.
  • It includes examples from member banks that illustrate how target design options, such as using multi-year approaches and combining lending and capital market targets, may be implemented.