As the Russia-Ukraine conflict continues to intensify, we have updated our EM scorecard to provide a snapshot of rela-tive vulnerabilities across 18 major emerging market economies, with a focus on debt and ESG concerns; Against the backdrop of heightened geopolitical tensions and rapidly rising borrowing costs, Turkey, Czech Republic, Hungary, and Poland appear particularly vulnerable to changes in global risk appetite; By our yardstick, the Philippines, Brazil, Indonesia, India, and Colombia look better insualted than many EM peers; On ESG metrics, South Africa, Indonesia, and the Philippines all face significant challenges, including on carbon effi-ciency, environmental protection, and a range of social issues.

Commodity export dependence across LatAm is high for EM. The commodity price surge due to war in Ukraine should bolster external accounts in several countries, as reliance on Europe as an export market has fallen. The hard currency windfall should help offset adverse effects on inflation and growth.

The March U.S. Regulatory Update covers Fed announcements on climate-related financial risk updates, ongoing SEC rule proposals, Hill hearings on crypto, and more.

Russia’s invasion of Ukraine has triggered a number of severe sanctions. China, an important partner, has maintained a deliberately neutral stance. While Russia-China trade is important, financial links remain minimal. China could mitigate Russia’s loss of access to global payment systems. Furthermore, with 40% of reserves frozen, holdings in China are critical. The Bank of Russia (CBR) may need to get creative with FX interventions.

SMEs comprise the vast majority of businesses globally, accounting for significant shares of GDP and employment; The majority of SMEs have insufficient access to financing: this gap stands at 18% of global GDP, and is higher in many EMDEs; Few SMEs measure and disclose their carbon emissions-a big challenge as global firms decarbonize their supply chains; New tools and initiatives have emerged to scale up sustainable finance for SMEs, including green credit guarantee schemes.

This note takes stock of the most salient recent policy developments relating to digital assets and proposals at the global, regional and national levels, including recent lawmakers’ consideration and moves by key regulators and central banks.