Latin America & Caribbean: Sustainable Finance State of the Market 2021

The Latin America and Caribbean (LAC) sustainable finance market grew significantly between 2019 and 2021, with total GSS issuance reaching USD 48.6 billion by June 2021. Green bonds remain the dominant instrument, though social and sustainability bonds have expanded rapidly, partly driven by COVID-19 relief efforts. Chile, Brazil, and Mexico are the primary markets, together accounting for 77% of all GSS issuance. While energy is the most funded sector, there is increasing diversification into low-carbon transport and sustainable agriculture. The region is also seeing a rise in sustainability-linked bonds (SLBs) and the development of national green taxonomies to standardize climate-aligned investments.

• The total cumulative GSS issuance in the Latin America and Caribbean (LAC) region reached USD 48.6 billion as of June 30, 2021, with green bonds accounting for 62% (USD 30.2 billion) of the market.
• Chile, Brazil, and Mexico are the dominant markets in the region, collectively representing 77% of all GSS issuance. Chile is the largest overall market with USD 17.8 billion, followed by Brazil with USD 11.7 billion and Mexico with USD 7.8 billion.
• Energy is the most funded sector for green bonds in LAC, representing 44% (USD 13.2 billion) of cumulative issuance. Transport is the second largest category at 28%, largely driven by the Republic of Chile's sovereign issuances for public transportation.
• The region has seen a rise in sustainability-linked bonds (SLBs), which are general-purpose bonds tied to key performance indicators (KPIs). By H1 2021, USD 10 billion in SLBs had been issued, with Brazil accounting for 63% of this segment.
• Sovereign issuance has played a pivotal role in market development, with Ecuador and Guatemala issuing the world's first sovereign social bonds, and Mexico issuing the first sovereign SDG bond.
• There is a growing trend toward the development of national green taxonomies in the region to provide science-based guidance for investments. Chile, Colombia, Mexico, and the Dominican Republic are currently developing their own taxonomies.
• While USD remains the dominant currency for GSS issuance (60% of green bonds), there is increasing use of local currencies, particularly the Brazilian Real (BRL), which has nearly matched USD in the number of individual green bond deals.
• External reviews are common in the LAC market, with over 88% of the total issued amount having some form of review. Second Party Opinions (SPOs) are the most popular, though Certification under the Climate Bonds Standard is increasing, particularly for Chilean sovereign bonds.

APA

Souza, L., & Tukiainen, K. (2021). Latin America & Caribbean: Sustainable Finance State of the Market 2021. Climate Bonds Initiative. https://www.climatebonds.net/files/documents/publications/cbi_lac_2020_04e.pdf

Chicago

Souza, Leisa, and Krista Tukiainen. Latin America & Caribbean: Sustainable Finance State of the Market 2021. Climate Bonds Initiative, 2021. https://www.climatebonds.net/files/documents/publications/cbi_lac_2020_04e.pdf.

Wikipedia

{{cite report |last1=Souza |first1=Leisa |last2=Tukiainen |first2=Krista |title=Latin America & Caribbean: Sustainable Finance State of the Market 2021 |publisher=Climate Bonds Initiative |date=September 2021 |url=https://www.climatebonds.net/files/documents/publications/cbi_lac_2020_04e.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{souza2021latin, author = {Souza, Leisa and Tukiainen, Krista}, title = {{Latin America \& Caribbean: Sustainable Finance State of the Market 2021}}, institution = {Climate Bonds Initiative}, year = {2021}, month = sep, url = {https://www.climatebonds.net/files/documents/publications/cbi_lac_2020_04e.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }