Impact Specialist
• Insight
Rethinking sovereign debt to finance the climate transition
Robeco is excited to launch an active ETF that finances the climate transition through sovereign bonds.
Authors
Paul Ruijs
Summary
- An active ETF channeling sovereign bond flows to governments leading the transition
- Built on ASCOR data to rank countries on climate ambition, policy, and decarbonization
- Designed to combine climate impact with a risk-return profile close to the broader market
Governments play a central role in financing the climate transition, yet sovereign bond markets remain an underused channel to mobilize capital at scale. Robeco and FTSE Russell have partnered to change this by developing a new framework that identifies countries taking credible steps to align with Paris climate goals. Built on the ASCOR methodology, the approach systematically scores governments on their climate policies and progress, which serves as input for a sovereign bond index that rewards climate leaders and reduces exposure to laggards. The Robeco Climate Euro Government Bond ETF is actively managed to meet or exceed the climate characteristics of this green index while aiming to match the risk and return of the broader market.
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