Sovereign Green, Social, and Sustainability Bond Survey

The report analyzes the issuance of sovereign GSS bonds based on a survey of 19 countries, finding that these instruments often attract a broader investor base and can price with a 'greenium' (lower yield) compared to vanilla bonds. It highlights that most issuers use GSS bonds to support national climate strategies and local market growth, typically managing the process through internal working groups and budget tagging of existing expenditures.

• Sovereign GSS bonds are primarily driven by the goal of mitigating climate change and fostering the growth of domestic green bond markets. For Developed Markets (DM), market development was a high priority, while Emerging Markets (EM) placed higher value on cheaper pricing and financial flexibility.
• The decision to issue GSS bonds is typically led by ministers. In EM countries, the Ministry of Finance is the most influential entity, whereas DM countries involve a wider range of ministers.
• Most sovereign GSS bonds finance existing expenditures from current or previous budgets rather than new projects. Only Lithuania, Nigeria, Luxembourg, and the Seychelles reported financing forward-looking expenditures.
• The issuance process is relatively fast once the decision is made, with 89% of respondents pricing their bonds in less than a year, and most in under nine months.
• Sovereign GSS bonds often exhibit a 'greenium'—pricing at a higher price and lower yield than existing vanilla debt—though this is more common in DM due to higher liquidity. In a sample of 23 bonds, nine showed a greenium and ten priced on the curve.
• GSS labels successfully attract new and diversified investors. On average, 44% of GSS deals were allocated to investors identifying as 'green', with some issuers actively giving preference to such investors.
• The use of GSS bonds increases financial transparency through budget tagging and impact reporting, which provides parliaments and external stakeholders with better metrics on the outcomes of government spending.
• Sovereign GSS issuance acts as a catalyst for local market growth by providing a riskless benchmark asset, which encourages other issuers like corporations and regional governments to enter the market.

APA

Harrison, C., & Muething, L. (2021). Sovereign Green, Social, and Sustainability Bond Survey. Climate Bonds Initiative. https://www.climatebonds.net/files/documents/publications/Sovereign-Green-Social-and-Sustainability-Bond-Survey.pdf

Chicago

Harrison, Caroline, and Lea Muething. Sovereign Green, Social, and Sustainability Bond Survey. Climate Bonds Initiative, 2021. https://www.climatebonds.net/files/documents/publications/Sovereign-Green-Social-and-Sustainability-Bond-Survey.pdf.

Wikipedia

{{cite report |last1=Harrison |first1=Caroline |last2=Muething |first2=Lea |title=Sovereign Green, Social, and Sustainability Bond Survey |publisher=Climate Bonds Initiative |date=January 2021 |url=https://www.climatebonds.net/files/documents/publications/Sovereign-Green-Social-and-Sustainability-Bond-Survey.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{harrison2021sovereign, author = {Harrison, Caroline and Muething, Lea}, title = {{Sovereign Green, Social, and Sustainability Bond Survey}}, institution = {Climate Bonds Initiative}, year = {2021}, month = jan, url = {https://www.climatebonds.net/files/documents/publications/Sovereign-Green-Social-and-Sustainability-Bond-Survey.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }