Latin America and the Caribbean Sustainable Debt State of the Market 2022

The LAC GSS+ bond market reached a cumulative total of USD154.1bn by the end of 2022. While 2022 saw a contraction in volumes, the market remains significant, accounting for an average of 21% of the region's debt. Sustainability bonds are the largest segment (35%), followed by green (28%), social (19%), and sustainability-linked bonds (17%). Chile, Mexico, and Brazil are the primary market drivers, with Chile leading in total volume at USD43.2bn. The report highlights the emergence of sovereign sustainability-linked bonds (SLBs), the potential of the blue economy, and the critical need for adaptation and resilience (A&R) financing. Key barriers include reporting inconsistencies and limited local capital market liquidity. The document recommends the adoption of national taxonomies, enhanced disclosure through platforms like the IDB's Green Bond Transparency Platform, and the use of innovative instruments to mobilize capital for the energy transition.

• The GSS+ bond market in Latin America and the Caribbean (LAC) reached a cumulative total of USD154.1bn by the end of 2022, with the sustainability theme representing the largest share at 35% (USD54.4bn).
• The LAC GSS+ market is dominated by Chile (USD43.2bn), Mexico (USD32.3bn), and Brazil (USD31.9bn). Chile is the only sovereign in the region to have issued across green, social, sustainability, and SLB themes.
• Sustainability-linked bonds (SLBs) have seen significant growth in LAC, reaching USD26.5bn by the end of 2022, which is 17% of the regional GSS+ market—significantly higher than the global average of 5.4%.
• Sovereign GSS+ issuance in the region reached a cumulative USD49.9bn by the end of 2022, representing a 442% increase from June 2020. Chile and Uruguay have pioneered sovereign SLBs, with Uruguay introducing a unique step-down reward feature.
• The social bond market grew by 247% to reach USD29.9bn by the end of 2022, largely driven by responses to the COVID-19 pandemic. Chile is the leading issuer in this category with USD19.3bn.
• Transition bonds are in their early stages in LAC, representing only 0.5% of the GSS+ market (USD770.4m), with most issuances originating from Brazilian non-financial corporates.
• The region is increasingly utilizing 'blue economy' instruments and debt-for-nature swaps, such as Belize's restructuring of USD550m in debt and Ecuador's USD1.65bn debt-for-nature conversion for the Galápagos Islands.
• Adaptation and resilience (A&R) are critical for LAC, with 22% of GSS+ deals including resilience-related use of proceeds, though the market remains tilted toward low-carbon mitigation solutions.
• National taxonomies are being developed to provide clarity and prevent greenwashing, with Colombia (2022) and Mexico (2023) having already published their frameworks.
• Reporting commitments remain a primary challenge for LAC issuers; only about half of Latin American issuers reported the allocation of proceeds post-issuance in a 2021 sample.

APA

Contreras, V. D., Lerner, A., Ambrosano, J., Costa, D., Borges, S., & Isaza, D. (2023). Latin America and the Caribbean Sustainable Debt State of the Market 2022. Climate Bonds Initiative. https://www.climatebonds.net/files/documents/publications/cbi_lac_sotm_2022_en__0.pdf

Chicago

Contreras, Valeria Dagnino, Alicia Lerner, Julia Ambrosano, Daniel Costa, Sofia Borges, and Diana Isaza. Latin America and the Caribbean Sustainable Debt State of the Market 2022. Climate Bonds Initiative, 2023. https://www.climatebonds.net/files/documents/publications/cbi_lac_sotm_2022_en__0.pdf.

Wikipedia

{{cite report |last1=Contreras |first1=Valeria Dagnino |last2=Lerner |first2=Alicia |last3=Ambrosano |first3=Julia |last4=Costa |first4=Daniel |last5=Borges |first5=Sofia |last6=Isaza |first6=Diana |title=Latin America and the Caribbean Sustainable Debt State of the Market 2022 |publisher=Climate Bonds Initiative |date=August 2023 |url=https://www.climatebonds.net/files/documents/publications/cbi_lac_sotm_2022_en__0.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{contreras2023latin, author = {Contreras, Valeria Dagnino and Lerner, Alicia and Ambrosano, Julia and Costa, Daniel and Borges, Sofia and Isaza, Diana}, title = {{Latin America and the Caribbean Sustainable Debt State of the Market 2022}}, institution = {Climate Bonds Initiative}, year = {2023}, month = aug, url = {https://www.climatebonds.net/files/documents/publications/cbi_lac_sotm_2022_en__0.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }