This is a clue that if properly supported by policymakers, for example with the adoption of a common regulatory standard, the demand for green bonds could pick up rapidly, fostering the transition towards net zero. In this respect, Malta is catching up compared to larger European countries. Although there are currently no green instruments listed at the Malta Stock Exchange (MSE), despite MSE having laid out advantageous incentives for the listing of green bonds in 2021, green finance is picking up. Over the summer, thirteen businesses set up the Malta ESG Alliance with the goal of taking the lead in the de-carbonisation efforts at a national level. Gradually ESG disclosure is becoming the norm. Nevertheless, a report recently published by the Central Bank of Malta has shown that investors in local markets are still relatively new to green investments, with over 60% of respondents to an ad hoc survey declaring that they have never invested in green bonds. Respondents also emphasised the lack of a unified standard and low market liquidity as constraints to the adoption of green financial instruments. Green finance in domestic capital markets thus has great upside potential. Interest in green finance is widespread among investors and if policies promoting educational awareness in this regard were made available at a larger scale, supply could meet demand, triggering a positive cycle that would jumpstart green finance in Malta. A Bank research paper suggested that a catalyst for change in this direction could be the issuance of green bonds by the  7  government.
Overall, Switzerland – a small open economy with a highly developed financial sector – is in a position to derive particularly significant benefits from the globalisation of financial markets. It is important to take advantage of these opportunities. Protectionism when foreigners acquire companies and excessive regulation of foreign investment should be avoided. Rather, the sale of Swiss companies below their real value can be avoided through innovation, flexibility and good management, and excessive risks of foreign investments can be limited through more personal responsibility on the part of investors. BIS Review 131/2007  1