Climate Finance Accounting, Sustainability and Green Bonds

the New Horizon for Climate Finance

Abstract

Abstract

The growing global pressure for sustainable practices has driven the need for transparency and standardization in environmental, social, and governance (ESG) information. In this context, the creation of the International Sustainability Standards Board (ISSB) and the subsequent publication of the IFRS S1 (General Requirements for Disclosure of Sustainability-Related Financial Information) and IFRS S2 (Climate-Related Disclosures) standards represent a significant advance. Brazil stands out for its pioneering role in the adoption of these international standards, evidenced by CVM Resolution 193 and CFC Resolution No. 1,710, which establish mandatory disclosures as of 2026. This initiative positions the country at the forefront of global sustainability reporting regulations. In parallel, the article addresses the crucial role of green bonds as financing mechanisms for projects with positive environmental impact, such as water infrastructure. However, challenges related to the transparency and effectiveness of these instruments are highlighted, highlighting the indispensability of green accounting for the independent measurement and verification of results. The integration of sustainability into accounting practices, together with the promotion of international collaborative research, is currently presented as fundamental for the development of a more resilient and equitable economy.