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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 report outlines the development of certification criteria for hydrogen assets, focusing on carbon intensity benchmarks, life-cycle assessment methodologies, and climate resilience requirements to align investments with the Paris Agreement's 1.5°C goal.

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.

Between 2015 and 2021, Indonesia's power sector tracked USD 35.6 billion in finance, with 58% allocated to renewable energy. While RE finance trended upward after 2016, it faced a setback in 2020 due to COVID-19 and the Omnibus Law. To reach the 2060 NZE target, Indonesia requires USD 16.1 billion in annual financing, leaving a current annual gap of USD 13.1 billion, most notably in solar and wind power.

The report argues that the coal sector is not aligned with 1.5°C targets and poses significant financial risks, including over US$1.4 trillion in potential stranded assets. It recommends that banks immediately cease financing new coal projects and implement a timed escalation strategy to exit coal exposure by 2030 in OECD and European countries, and by 2040 worldwide. Key requirements for coal companies include the adoption of public, asset-by-asset phase-out plans and just transition strategies for workers and the environment.

The Canadian Climate Institute argues that for Canada to meet its net-zero goals, the oil and gas sector requires transformational investment. It proposes a two-tier requirement system for the federal government's Sustainable Finance Action Council (SFAC) climate investment taxonomy: company-level net-zero targets and project-level emissions-intensity benchmarks. Specifically, it argues that "transition" labels should only apply to projects that reduce emissions from existing production, as 1.5°C pathways necessitate "no investments in new production."

The report analyzes the alignment between the Colombian and EU taxonomies, finding a high degree of similarity in climate change mitigation criteria for 47% of compared activities. While both frameworks share core principles and governance structures, the EU Taxonomy is generally more detailed in its technical eligibility criteria and adaptation objectives, whereas the Colombian Taxonomy offers more specific requirements for land-use sectors and certain circular economy safeguards.

The document analyzes the historical 'lock-in' of SADC's infrastructure, which has been driven by colonial mercantile systems and extractive economic imperatives. It contends that current infrastructure is elitist and ecologically unsustainable, failing to meet the needs of the region's growing population. To counter this, the authors propose a 'regenerative' approach based on circular economies and human wellbeing. The paper presents three visionary scenarios—one driven by political response to climate migration, one by bottom-up civic innovation, and one by ESG-led market incentives—to illustrate potential pathways toward sustainable development. It concludes with recommendations for policy reform, including the creation of a Green Infrastructure Task Team and the adoption of community-based public-private partnerships (C-PPPs).

The Climate Bonds Standard and Certification Scheme provides a voluntary labelling mechanism for debt instruments, assets, and entities to verify their alignment with climate goals, specifically limiting global temperature rise to 1.5°C. The scheme has certified over USD270bn of Use of Proceeds Green Bonds since 2012. Certification is based on science-based eligibility criteria and is verified by independent Climate Bonds Approved Verifiers, with oversight provided by an international Climate Bonds Standard Board. For Use of Proceeds (UoP) instruments, certification is available for single debt instruments or programmatic issuances, covering both capital expenditure (Capex) and operational expenditure (Opex) for eligible green or transition assets. The process involves pre-issuance applications—requiring a Green Bond Framework, Certification Agreement, Certification Information Form, and Verification Report—followed by post-issuance verification to maintain the label's validity.

The Climate Bonds Standard and Certification Scheme provides a voluntary labelling system for investments and assets consistent with limiting global temperature rise to 1.5C. The guide details the asset certification process, distinguishing between static and dynamic certifications, and specifies the requirements for Level 1 Certification, which applies to assets aligned with 1.5 degree pathways.

The Climate Bonds Initiative provides a voluntary certification scheme for sustainability-linked debt instruments, using science-based criteria to verify that corporate transition plans and performance targets are consistent with limiting global temperature rise to 1.5°C. Certification is available for single instruments or programmatic series, provided the issuer is a legal entity and the activities fall under existing Climate Bonds Standard Sector Criteria. The scheme offers two labels: 'Aligned' (Level 1) for those already aligned with 1.5°C pathways, and 'Transition' (Level 2) for those with plans to achieve alignment by 2030. The process requires a Certification Agreement, a Certification Information Form, and a Verification Report, with mandatory annual verification.

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 policy brief examines the challenges of sustainable finance, noting that a lack of standardized information and an over-reliance on green bonds for clean energy generation limit the flow of capital. It highlights international examples, such as the European Union's taxonomy and reporting directives, and suggests Canada adopt similar frameworks for transition finance and sustainability-linked finance to support high-emitting sectors and aggregated project investments.

Reclaim Finance criticizes the French government's "Industrie verte" bill, specifically its financing measures, for lacking strict criteria to prevent public and private savings from funding fossil fuel projects. The organization argues that new initiatives like the "Avenir climat" savings plan for minors and changes to life insurance regulations do not guarantee alignment with the 1.5°C warming limit and may exacerbate inequalities. Reclaim Finance proposes mandatory transparency indicators for controversial activities, minimum investment criteria for public-supported products, and preferential loan rates for ecological transition projects.

Reclaim Finance criticizes the French "Green Industry" bill for lacking strict investment criteria and restrictive filters, which may allow public and private savings to continue supporting carbon-based activities. The organization proposes introducing transparency indicators for controversial activities and establishing minimum investment criteria to ensure alignment with the 1.5°C global warming limit.

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 report provides a comprehensive overview of Colombia's sustainable debt market, which reached USD 2.4 billion by the end of 2022. It details the dominance of green bonds, the emergence of sustainability-linked bonds, and the role of the Colombian Green Taxonomy in guiding investments. The document also examines the country's climate vulnerability, the policy framework for adaptation and resilience, and specific opportunities across economic sectors such as energy, transport, and construction to support a low-carbon transition.

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.