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As of the end of 2022, Colombia's GSS+ debt market totaled USD 2.4 billion, with green bonds being the most prominent segment at USD 1.3 billion. The market is characterized by a strong sovereign presence and a growing regulatory framework, including the pioneering Colombian Green Taxonomy. While the market is primarily domestic, there is significant potential for growth in hard-to-abate sectors through sustainability-linked bonds and in nature-based solutions for climate adaptation. The report recommends scaling sovereign issuance, establishing green securitization facilities, and expanding the taxonomy to include biodiversity and circular economy objectives.

The report provides a comprehensive overview of Peru's sustainable finance landscape, detailing the growth of Green, Social, and Sustainability (VSS+) bonds. It highlights Peru's role as a regional pioneer, starting with the first green bond in Latin America in 2014, and examines the current market composition where sustainable bonds dominate. The document identifies significant investment gaps in infrastructure, water management, and low-carbon transport, while outlining a roadmap for growth involving key public and private stakeholders. It also addresses systemic barriers such as low market liquidity, currency risk, and the need for a national green taxonomy.

The report argues that climate change poses significant physical and transition risks to financial assets, particularly in high-carbon sectors, and that these risks are often not adequately priced into the market. It highlights the potential for 'stranded assets' in fossil fuels and coal, while simultaneously identifying substantial growth opportunities in renewable energy, green infrastructure, and energy efficiency. The document concludes that climate-aware investing is a necessity that can match or outperform conventional benchmarks without sacrificing returns.