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The Japanese green bond market continued to expand in 2021, led by financial institutions. Low-carbon buildings and energy are the primary use of proceeds. The market is characterized by high rates of external review and a preference for shorter maturity periods. Japan is also emerging as a leader in transition finance, supported by government guidelines and the introduction of sustainability-linked bonds. The Bank of Japan has introduced funding operations to support climate-aligned investments by financial institutions.

The report analyzes the funding needs of China's power sector as it transitions from coal-dependency toward renewable energy under the '30·60' dual carbon goals. It highlights the role of transition finance, specifically Sustainability-Linked Bonds (SLBs) and transition bonds, in supporting high-carbon sectors. The document compares international standards from the Climate Bonds Initiative (CBI) with Chinese domestic frameworks, arguing that credible transitions require science-based targets, transparent KPIs—preferably greenhouse gas emissions—and robust internal and external monitoring to avoid 'greenwashing'.

The Japanese green bond market continued to grow in 2021, led by financial corporates. Buildings and energy are the primary sectors for use of proceeds. The report also highlights the emergence of sustainability-linked and transition bonds, alongside a comprehensive suite of government guidelines and central bank initiatives to promote climate-related financial disclosures and transition finance.

The document argues that Canadian oil producers are highly vulnerable to declining global demand and falling prices. While the heavy reliance on U.S. refineries provides a temporary buffer, this will not shield Canada from global price volatility or the long-term decline in petroleum consumption. The author contends that ESG credentials and production costs will not allow Canada to compete against lower-cost Middle Eastern producers in a shrinking market. Consequently, the brief warns of an existential threat to the sector, including job losses and reduced tax revenues, urging the Canadian government to diversify its economy.

RMI argues that US airports are uniquely positioned to host multi-megawatt fast-charging hubs to support the transition to electric vehicles (EVs), particularly for high-mileage commercial drivers like ridehail and taxi operators. The brief highlights that the US transportation sector must reduce greenhouse gas emissions by at least 45% by 2030 to align with a 1.5°C target, requiring 70 million EVs on the road. Using Los Angeles International Airport (LAX) as a model, RMI found that various business models can achieve an investment payback period of less than 10 years. The document emphasizes the need for early coordination between airports and utilities to manage infrastructure costs and capacity. It also notes that such hubs can address 'charging deserts' in lower-income areas and support mandates like California's Clean Miles Standard, which requires 90% of ridehail fleet miles to be electric by 2030.

The report analyzes the current trajectory of electric vehicle (EV) adoption, noting that while sales are growing exponentially and battery costs have fallen by 89% since 2010, market forces alone are insufficient to meet climate targets. It recommends that policymakers target 60% ZEV sales by 2030 and 100% by 2035. The authors advocate for a policy portfolio combining ZEV sales standards and tailpipe GHG emissions standards, alongside consumer incentives, charging infrastructure investment, and critical mineral supply chain development. The document also highlights the role of 'learning curves' and the success of the solar industry in overcoming material bottlenecks as evidence that the EV transition can be accelerated through strategic policy.

The report examines the global cocoa market, highlighting the tension between growing demand and climate-related supply risks. It analyzes how VSSs like Fairtrade and Rainforest Alliance attempt to improve sustainability and farmer incomes, while noting that power imbalances and low farm-gate prices continue to drive poverty among the 5 to 6 million cocoa farmers worldwide.

The briefing posits that green hydrogen is transitioning from pilot projects to the creation of niche markets (Phase 3 of the S-curve), which will lead to mass-market adoption as costs fall. It highlights scaling production, expanding demand in heavy industry, and the role of policy support in driving this acceleration.

Climate Bonds Initiative introduces the 'Five Hallmarks of a Credibly Transitioning Company' to combat greenwashing in transition finance. These Hallmarks—Paris-aligned targets, robust plans, implementation action, internal monitoring, and external reporting—provide a science-based methodology to evaluate whether a company's transition is rapid enough to meet the 1.5C goal. The report details the integration of these Hallmarks into a new certification scheme for non-financial corporates and SLBs, emphasizing the need for common sectoral pathways over company-specific baselines. It also highlights the growth of the SLB market, particularly among high-emitting sectors, and the necessity of comprehensive scope 1, 2, and 3 emissions accounting to ensure transition credibility.

The voluntary carbon market, valued at $2 billion in 2021, faces significant challenges regarding trust and scarcity relative to global climate needs. RMI proposes three solutions to scale high-quality credits: reducing project development time and costs through upfront capital and technology, differentiating the credit supply via ratings and quality standards, and establishing a transparent data platform to ensure integrity.

The report analyzes 93 green bonds totaling USD 93.3bn issued in H1 2022. It finds that green bonds generally outperformed vanilla equivalents in terms of book cover and spread compression in both EUR and USD markets. While 20% of the non-sovereign sample achieved a 'greenium' (pricing inside their own yield curve), the report notes that investors were more cautious due to geopolitical and macroeconomic volatility. Additionally, the analysis indicates that green bonds aligned with the Climate Bonds Database maintain better liquidity in the secondary market compared to vanilla and non-aligned green bonds, particularly in the real estate and utility sectors.

The Green Guarantee Company (GGC) is designed to unlock private institutional capital for climate projects in emerging and frontier markets by providing full hard-currency guarantees for bonds and loans of USD 50-200 million with maturities of 5-20 years. To address technical barriers, the GGC includes a USD 10 million technical assistance (TA) facility to build issuer capabilities and support certification against the Climate Bond Standard (CBS). The instrument will pilot in South Africa before expanding to other large emitters like Brazil, India, and Indonesia, and eventually to more vulnerable least developed countries. Financial modeling suggests the GGC can catalyze up to USD 10.6 billion in climate debt over 20 years, achieving operating breakeven within 3 to 7 years across various scenarios. Expected impacts include the addition of 7.97 GW of renewable energy capacity and the avoidance of approximately 75 Mt of carbon dioxide equivalent.

The Fund for Nature (TFFN) is a financial instrument designed to provide market-rate project-level debt to nature-based carbon projects, primarily in Sub-Saharan Africa. By offering an alternative to the common practice of pre-selling carbon credits at steep discounts to corporate buyers, TFFN aims to increase the revenue captured by local project implementers and communities. A central innovation of the fund is the development of a standardized, open-sourced Simple Agreement for Future Offtake (SAFO), which serves as a bankable document to secure future carbon credit supply and act as collateral for debt. The fund targets the agriculture, forestry, and blue carbon sectors, specifically focusing on afforestation, reforestation, and revegetation (ARR) and reducing emissions from deforestation and forest degradation (REDD+). A pilot fund of USD 50-70 million is envisioned, with the potential to scale as voluntary carbon markets are projected to grow significantly by 2030.

The report examines the global coffee market, highlighting the vulnerability of smallholder farmers to climate change and price volatility. It analyzes the impact of voluntary sustainability standards (VSSs), noting that while VSS-compliant production grew significantly between 2008 and 2019, it has recently faced a decline due to oversupply and a shift toward corporate sustainability programs. The document argues that sustaining the sector requires internalizing environmental costs, increasing demand for sustainable coffee in producing countries, and implementing living income reference prices to ensure fair compensation for farmers.

The report analyzes the alignment between three voluntary sustainability standards (VSSs)—the East African Organic Products Standard (EAOPS), the Sustainable Rice Platform (SRP) Standard, and GLOBALG.A.P.—and the agricultural policies of the East African Community (EAC). It focuses on staple crops (beans, maize, rice, and wheat) which are critical for food security and regional trade. The findings indicate strong alignment with climate resilience goals and medium alignment with productivity and trade objectives. Key barriers to scaling VSSs include high certification costs for smallholders, low domestic demand for certified products, and a lack of official political recognition from national standards bureaus. The report recommends that VSS bodies use pilot projects to prove their value and that EAC policy-makers provide targeted financial support and official recognition to integrate these standards into regional trade and development frameworks.

In H1 2022, cumulative GSS+ labelled debt reached USD 417.8 billion, a 27% year-on-year decrease attributed to inflation and market volatility following the Russian invasion of Ukraine. Green bonds remained the dominant theme, accounting for 52% of H1 volumes, while transition-themed Use of Proceeds (UoP) bonds saw a 2.5-fold increase from Q1 to Q2. The report highlights the expansion of sovereign GSS+ issuance, the introduction of the EU's Complementary Delegated Act including nuclear and gas, and the proliferation of national sustainable finance taxonomies in jurisdictions such as Colombia and South Africa.

The report examines the supply and demand sides of digital payments in Sudan to help humanitarian actors like the Norwegian Refugee Council (NRC) transition from cash to digital transfers. It identifies systemic barriers, including political instability, low digital literacy, and the prevalence of informal airtime credit transfers. The analysis segments beneficiaries by digital readiness, highlighting a significant gender divide and the high cost of handsets as primary barriers. Recommendations include subsidizing devices, providing digital capability training, and advocating for the recognition of refugee IDs for KYC purposes.

The 2021 Hong Kong GSS+ market saw significant expansion, with USD 14bn in labelled debt from Hong Kong issuers and a quadruple increase in GSS+ debt arranged or issued in the city to USD 57bn. Growth was driven by the HKSAR Government's green bond programme and a diversifying issuer base, including real estate and financial corporates. The report highlights the emergence of transition finance and the adoption of the Common Ground Taxonomy to facilitate cross-border green finance between China and the EU.

The document evaluates insurance penetration and innovation in Uganda, noting a decline in penetration to 0.796% by 2021. It reviews the IRA's progress in implementing a 2019 action plan, highlighting the creation of a regulatory sandbox and streamlined product approvals, while recommending further inter-regulatory coordination and digital incentives to reach underserved markets.

The ASEAN sustainable debt market experienced rapid growth in 2021, with GSS debt issuance reaching USD 24 billion and sustainability-linked instruments reaching USD 27.5 billion. Singapore remains the regional leader, while the green theme continues to be the most popular. The report highlights the emergence of the ASEAN Taxonomy for Sustainable Finance and the growth of local currency issuances, particularly in Singapore and Thailand.