Sustainable finance, despite its rapid growth, is at a crossroads. The sector’s credibility is being eroded by a wave of skepticism surrounding ESG practices, exacerbated by weak regulatory alignment and economic turbulence. If left unaddressed, these issues risk stalling progress just when climate finance is most urgently needed. Photo by Denniz Futalan: https://www.pexels.com/photo/woman-holding-green-yellow-and-white-umbrella-standing-near-black-crt-tv-1344265/ At the heart of the problem lies trust, or the lack of it. Investors and regulators increasingly question whether sustainability-linked instruments deliver meaningful change or merely greenwash corporate reputations. A 2023 analysis of sustainability-linked bonds (SLBs) revealed that 34% of issuers missed their stated sustainability targets, raising doubts about the robustness of underlying KPIs. Worse, many issuers provided limited transparency, fueling perceptions that these instruments are more about optics than subs...