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The VSS+ debt market in Latin America and the Caribbean (LAC) reached a cumulative total of $154.1 billion by the end of 2022. While the market experienced a volume contraction in 2022 due to global inflation and rising interest rates, it represents approximately 21% of the region's total debt volume from 2019 to 2022. Sustainable bonds are the largest segment (35%), followed by green (28%), social (19%), and sustainability-linked bonds (SLBs) (17%). Chile, Mexico, and Brazil are the primary markets, with Chile being the only country to have issued sovereign bonds across four of the five thematic labels. The report highlights the emergence of 'blue bonds' and nature-debt swaps in the Caribbean and Ecuador, and emphasizes the need for standardized taxonomies and improved reporting transparency to attract further international capital.

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 2022 Hong Kong GSS+ market saw a decline in bond volumes from local issuers due to macroeconomic pressures, but significant growth in debt arranged within the territory, totaling USD 80.5bn. The HKSAR Government remains a regional leader in green bond issuance, while the city continues to serve as a primary offshore financing platform for Mainland China's decarbonisation efforts.

The report examines the global palm oil sector, highlighting the growth of VSS-compliant production and the challenges faced by smallholders. It analyzes how climate change and geopolitical conflicts, such as the war in Ukraine, affect supply and pricing. The document argues that while VSSs can reduce deforestation and improve yields, the lack of consistent price premiums and high certification costs hinder their adoption by smallholders. It concludes with recommendations for better price transparency, living wage benchmarks, and stronger government support to build a more sustainable value chain.

The briefing contends that current oil price benchmarks, such as WTI and Brent, fail to account for the varying greenhouse gas emissions intensities of the oils they comprise. It highlights that oils with similar quality and price can have climate footprints that differ by a factor of two to five, creating perverse incentives. By integrating data from the Oil Climate Index plus Gas (OCI+), the author suggests that the market could better incentivize emissions reductions and allow buyers to accurately account for supply chain emissions.

The report provides a comprehensive overview of China's sustainable bond market in 2022, highlighting the record-breaking growth of green bonds and the emergence of transition finance tools. It details the scale of issuance, the shift toward stricter standards, the role of different issuers, and the specific application of sustainability-linked bonds (SLBs) and transition bonds in heavy industries.

The ASEAN sustainable finance market contracted by 32% in 2022 to USD 36bn due to rising inflation and interest rates, though volumes remained double those of 2020. Singapore continues to lead the region, accounting for 60% of 2022 issuance. While green bonds and loans showed the most resilience, sustainability-linked bonds (SLBs) saw a nearly 90% plunge. Sovereign issuance remained robust, with Singapore and the Philippines entering as new sovereign issuers. The report highlights a shift toward local currency denomination in green debt and a critical need for mandatory, science-based corporate transition plans to avoid greenwashing and support hard-to-abate sectors.

The report details the growth and composition of China's GSS+ debt market, highlighting that China was the largest global source of green bonds in 2022. It examines the shift toward 100% use-of-proceeds alignment, the emergence of transition finance for hard-to-abate sectors, and the dominance of rural revitalisation in the social bond segment.

The global GSS+ debt market reached a cumulative volume of USD3.7tn by the end of 2022, though new issuance fell 24% year-on-year to USD858.5bn due to rising interest rates and macroeconomic instability. Green bonds remained the dominant theme, accounting for 58% of 2022 volumes at USD487.1bn, while social bonds saw the steepest decline (41%) as COVID-19 recovery funding tapered. Transition bonds were the only segment to grow, increasing 5% to USD3.5bn, driven by policy support in China and Japan. The report also highlights the emergence of sovereign sustainability-linked bonds (SLBs) in Chile and Uruguay and the need for a dedicated Climate Resilience Taxonomy to scale adaptation and resilience (A&R) financing.

The report examines the role of voluntary sustainability standards (VSS) in the global banana industry, noting that while VSS-compliant bananas grew significantly between 2008 and 2019, growth is now slowing. VSS-compliant producers can earn 60% to 100% more than conventional producers, but they struggle against artificially low conventional prices. The industry faces threats from climate change, pests like Tropical Race 4, and economic disruptions. The report argues that the costs of sustainable production must be shared across the supply chain, involving retailers, governments, and regional networks.

The report identifies widespread greenwashing in the food sector, particularly among major meat and dairy producers. It highlights the use of misleading labels like 'carbon neutral' and 'net zero', the reliance on carbon offsetting over absolute emissions reductions, and the use of idyllic imagery to mask intensive farming practices. Polling in the UK and Germany shows that while consumers are concerned about greenwashing, they are still influenced by these claims in their purchasing decisions. The document calls for stricter government regulation of green claims and a systemic transformation of the food system to reduce greenhouse gas emissions.

The report finds that green bonds in EUR and USD generally outperformed vanilla equivalents in H2 2022, exhibiting higher book cover and greater spread compression. While the incidence of an outright 'greenium' (pricing inside the yield curve) decreased due to macroeconomic volatility, green bonds still achieved relatively tighter pricing than matched vanilla pairs. Approximately 67% of these bonds were allocated to green or responsible investors. The report also notes a trend of auto manufacturers increasing their use of green labels and a net growth of 11.2% in green bond ETF assets.

The report analyzes the global banana industry, highlighting the role of VSSs like Fairtrade and Organic in improving producer prices and resilience. It details the sector's high vulnerability to climate-driven pests and diseases, such as Tropical Race 4, and the economic pressures caused by retail price wars and market concentration. The document argues for a shared responsibility model across the value chain to ensure living wages and sustainable production.

One year after the invasion of Ukraine, the EU has substituted nearly 75% of Russian gas imports and seen wind and solar generate a record 22% of its electricity in 2022. Globally, gas demand is forecast to peak by the end of the decade, with 88% of electricity demand growth to 2025 expected to be met by renewables. While renewable energy saved billions in fossil fuel costs, high gas and coal prices drove 90% of the global increase in electricity costs in 2022. Russia faces significant financial losses from sanctions, including a USD 25 billion public deficit in January 2023, while EU industrial production grew by over 2% on average despite a 15% drop in industrial gas demand.

The report examines the transition to a Market-Based Economic Dispatch (MBED) mechanism in India to address financial distress in the distribution sector and support the target of 50 percent non-fossil fuel power generation capacity by 2030.

The report analyzes the voluntary carbon market (VCM), focusing on the opaque role of intermediaries and the lifecycle of carbon credits from creation to retirement. It identifies a lack of transparency in transaction data and pricing, noting that while project creation and end-user claims are somewhat documented, the movements of credits between issuance and retirement remain largely hidden. The analysis details the costs associated with different project types—renewable energy, household devices, and forestry—and the various fees charged by registries and intermediaries. It concludes with recommendations for registries and corporations to increase disclosure of account holders and retirement details to improve market trust.

The report examines the global cotton market, highlighting the growth of VSS-compliant cotton, which reached 25%–26% of total production by 2019. It details the vulnerabilities of cotton farmers to climate change and market volatility, noting that farmers often receive less than 10% of a garment's retail price. The document argues for better price transparency, long-term contracts, and the internalization of external costs to ensure living incomes for smallholders.

The report analyzes the global cotton industry, highlighting the growth of sustainable cotton produced under voluntary sustainability standards (VSS) and the challenges posed by climate change and market volatility. It examines the disparity in value distribution across the textile supply chain, where smallholder farmers receive a minimal fraction of retail prices. While VSS like Better Cotton and Organic can improve yields and incomes, the report notes that many sustainable products are sold at conventional prices. It recommends improving contract transparency, internalizing external costs, and developing regional value chains, particularly in West Africa, to enhance resilience and farmer income.

The document examines the clash between the rural African donkey market, where the animal is a vital workhorse for the poor, and the lucrative Chinese market for ejiao (donkey-hide glue). It highlights how explosive demand in China has led to donkey shortages, illicit smuggling, and severe welfare abuses, which in turn diminish the socio-economic mobility of rural Africans, particularly women and girls. The author argues that the current unregulated trade risks damaging China-Africa relations and suggests implementing sustainability certifications, breeding programs, and a distinction between medicinal and wellness-based ejiao consumption to ensure a sustainable supply chain.

The report examines the potential for decarbonizing Canada's residential building sector by replacing central air conditioners with heat pumps. It identifies five primary barriers to adoption—lack of familiarity, the infrequent nature of HVAC replacement, short decision windows during emergencies, limited stock, and higher initial costs. The authors model a scenario where all new central air conditioners are replaced by heat pumps from 2025 to 2035, projecting a net benefit of 12.6 billion CAD, including 10.4 billion CAD in energy bill savings and a reduction of 19.6 million tonnes of CO2 equivalent. The document proposes several policy interventions, including national equipment regulations, updated building codes, and upstream incentives for distributors and manufacturers, while highlighting the importance of energy justice for low-income tenants and vulnerable populations.