Latin America & Caribbean Green finance state of the market 2019

The Latin American and Caribbean (LAC) green bond market experienced a strong recovery in 2019, largely driven by Chile's first sovereign green bonds. While Brazil, Chile, and Mexico dominate the market, the region shows significant potential for expansion in green infrastructure, sustainable agriculture, and ocean-based 'blue' finance. The report highlights a high prevalence of USD-denominated issuance and a strong reliance on external reviews, though post-issuance reporting varies by issuer size and type.

• LAC green bond issuance grew significantly in the first half of 2019, with USD 3.7bn issued, which is three times the volume of H1 2018. This growth was primarily driven by the Republic of Chile issuing the region's first sovereign green bonds, totaling USD 1.4bn in June and EUR 861m in July 2019.
• The regional market is highly concentrated, with Brazil, Chile, and Mexico accounting for the vast majority of issuance. Brazil is the largest market, representing 41% of total regional issuance to date (USD 5.1bn), followed by Chile at 25% (USD 3.1bn) and Mexico at 14% (USD 1.8bn).
• Use of proceeds in LAC differs from global trends; while Energy is the most funded sector (50% of proceeds), Land use and Industry represent a significantly higher share of LAC issuance compared to the global market. Conversely, Buildings and Water are among the least funded sectors in LAC, each accounting for only 4%.
• Hard currency dominates the LAC green bond market, with 82% of issuance in hard currency and 70% specifically denominated in USD. This is significantly higher than the 34% hard currency share in the overall LAC bond market.
• Private placements are more popular in LAC than globally, accounting for 20% of the issuance amount and 27% of the bond count. This trend is particularly acute in Colombia (86%), Mexico (49%), and Argentina (49%).
• External reviews are common, with 90% of the issued amount benefiting from a second party opinion (SPO), green bond rating, Certification under the Climate Bonds Standard, or assurance. SPOs are the most frequent, used in 57% of external reviews.
• Sustainable agriculture is significantly underfunded in the green bond market despite its economic importance in LAC. Only 2% of total regional issuance and 10% of Land use allocations are related to agriculture, with most Land use funding going to certified forestry and paper.
• The 'blue economy' (sustainable ocean resources) represents a major growth opportunity, particularly for Caribbean island nations. While global investment in SDG 14 is low, initiatives like the Caribbean Regional Ocean Policy and the use of 'blue bonds' for conservation are emerging.
• Post-issuance reporting levels are generally high, with 88% of the amount issued having publicly available reports. However, reporting is more consistent among larger, benchmark-sized issuers and those who obtained external reviews.

APA

Climate Bonds Initiative (2019). Latin America & Caribbean Green finance state of the market 2019. https://www.climatebonds.net/files/documents/publications/cbi_lac_sotm_19_web_02.pdf

Chicago

Climate Bonds Initiative. Latin America & Caribbean Green finance state of the market 2019. 2019. https://www.climatebonds.net/files/documents/publications/cbi_lac_sotm_19_web_02.pdf.

Wikipedia

{{cite report |author=Climate Bonds Initiative |title=Latin America & Caribbean Green finance state of the market 2019 |date=2019 |url=https://www.climatebonds.net/files/documents/publications/cbi_lac_sotm_19_web_02.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{climatebondsinitiative2019latin, author = {{Climate Bonds Initiative}}, title = {{Latin America \& Caribbean Green finance state of the market 2019}}, institution = {Climate Bonds Initiative}, year = {2019}, url = {https://www.climatebonds.net/files/documents/publications/cbi_lac_sotm_19_web_02.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }