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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 report evaluates transition planning among ASEAN companies in sectors like cement, steel, and chemicals against the Climate Bonds Initiative's 'Five Hallmarks' of a credibly transitioning company. It finds that while net-zero commitments are increasing, most plans are fragmented and lack the robust, costed, and science-based pathways necessary for a 1.5°C alignment. The document provides specific analysis of companies such as Siam Cement Group and PTT, and offers guidance on improving the credibility of sustainability-linked bonds (SLBs) by ensuring they include material emission scopes and absolute targets.

The global steel sector, responsible for approximately 7% of worldwide energy-related CO2 emissions, faces a critical transition period as 71% of coal-based blast furnace capacity will require reinvestment by 2030. The report highlights the disparity between current production methods—specifically the high emissions of Blast Furnace-Basic Oxygen Furnace (BF-BOF) versus Electric Arc Furnace (EAF)—and the massive investment required for enabling infrastructure, such as green hydrogen and CO2 pipelines. It advocates for a combination of upstream, midstream, and downstream policies, including Carbon Contracts for Difference (CCfDs) and Green Public Procurement (GPP), to avoid stranded assets and align the industry with a 1.5°C-compatible trajectory. Additionally, the Climate Bonds Initiative introduces sector-specific criteria to guide the certification of climate-aligned steel assets and companies.

As of September 30, 2022, the cumulative issuance of GSS+ bonds exceeded $3.5 trillion, with green bonds surpassing $2 trillion. While the market saw a decline in Q3 2022 compared to previous periods due to geopolitical and macroeconomic factors, green bonds remained the dominant type, accounting for 52% of issuance year-to-date. International organizations are the largest issuers, and the market is heavily concentrated in Euro, US Dollar, and RMB denominations. A dedicated section highlights the Middle East and Africa market, which has reached $33.3 billion in cumulative issuance, characterized by a high proportion of green bonds and sustainability-linked bonds (SLBs).

The document establishes a framework for Coal Transition Mechanisms (CTMs) to ensure they deliver real emissions savings, align with 1.5°C goals, and support a just transition. It outlines eight specific guidelines across four 'stage gates': plant eligibility, transition pathways, social protection, and accountability. The framework is illustrated through a real-world case of ratepayer-backed bond securitization in the United States and hypothetical scenarios involving a sovereign sustainability-linked bond in Indonesia and a managed transition vehicle for an Independent Power Producer (IPP).

By 30 September 2022, cumulative global GSS+ debt topped USD3.5 trillion, with green bonds surpassing the USD2 trillion milestone. While Q3 2022 saw a decline in issuance volumes due to geopolitical and macroeconomic factors, the market remains dominated by EUR, USD, and CNY denominations. In the Middle East and Africa (MEA), the GSS+ market has reached USD33.2 billion, characterized by a high proportion of sustainability-linked bonds (SLBs) compared to the global average, reflecting the region's concentration of hard-to-abate sectors.

The document argues that while the costs of climate action are high, the costs of inaction are higher, noting that physical climate risk has already increased the cost of capital for V20 countries by USD62bn over 10 years. It proposes a three-pillar policy framework: providing clarity on green investments via taxonomies, tilting investment toward green opportunities through de-risking and carbon pricing, and building green investment pipelines. Key mechanisms suggested include the use of junior capital by development finance institutions to mobilize private investment, the removal of fossil fuel subsidies, and the implementation of carbon border adjustment mechanisms (CBAMs). The summary concludes with a list of 101 specific policy ideas across sectors including energy, transport, and agriculture to be detailed in a full report.

The report applies the AIIB-Amundi Climate Change Investment Framework (CCIF) to evaluate climate-related financial risks and opportunities across sectors, companies, and debt issuers. The analysis reveals a strong focus on climate mitigation and greenhouse gas measurement, but a significant deficiency in climate adaptation planning and implementation. Notably, no analyzed company performed well across all three CCIF objectives: mitigation, adaptation, and financial contribution.

The document details the criteria and multi-step screening process for the CBI Green Bond Database, emphasizing self-labeling, public disclosure, and alignment with the Climate Bonds Taxonomy and Sector Criteria. It defines eligible assets across energy, transport, water, waste, land use, and industry, while explicitly excluding fossil fuel-related activities. The methodology also addresses the treatment of adaptation and resilience measures, R&D expenditures, and the relationship between the database and the formal CBI Certification Scheme.

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 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 analyzes Peru's sustainable finance landscape, noting that while it was a regional pioneer with the first green bond in 2014, its GSS+ market has expanded more slowly than its peers. As of April 2022, the market reached approximately USD 6.6bn across 16 deals, dominated by sovereign sustainability bonds. The document identifies significant investment gaps in infrastructure (USD 110bn) and sanitation (USD 22bn), while highlighting opportunities in renewable energy, low-carbon agriculture, and nature-based solutions. It outlines structural barriers such as low market liquidity, currency hedging challenges, and political instability, and recommends the development of a national green finance taxonomy by 2025 to provide clarity and attract capital.

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 briefing addresses the lack of standardised definitions for sustainable agriculture, which increases the risk of greenwashing. It examines four representative production systems—regenerative, ecological intensification, sustainable intensification, and organic agriculture—and argues that sustainability should be assessed based on specific management practices rather than broad system labels. The author categorises practices into 'Always', 'Usually', and 'Sometimes' sustainable based on environmental impact, while emphasizing that all must meet 'do no significant harm' (DNSH) social standards. It identifies uncontrolled deforestation and the conversion of high-carbon stocks as permanently unsustainable practices.

In the first half of 2022, GSS+ bond issuance totaled $417.8 billion, a 27% year-on-year decrease attributed to inflation and the Russia-Ukraine conflict. Green bonds remained the dominant category, with China leading in issuance volume. The report highlights the growth of transition bonds, particularly in Japan and China, and discusses the evolving landscape of global sustainable finance taxonomies, including the EU's inclusion of gas and nuclear energy.

The Climate Bonds Initiative (CBI) established the Social and Sustainability Bond Database (SSBDB) to provide transparency on global social and sustainability debt. The methodology employs a three-step screening process—identification, use of proceeds (UoP) analysis, and SDG mapping—to determine eligibility. To be included, instruments must be self-labelled by the issuer, provide sufficient public disclosure, and not breach minimum climate safeguards. The SSBDB covers social bonds, sustainability bonds, and sustainability-linked bonds (SLBs), with some instruments appearing in both the SSBDB and the Green Bond Database if they meet the requirements of both.

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 argues that the EU steel sector faces a critical investment window as 74% of blast furnace capacity requires renewal by 2030. It advocates for a combination of carbon pricing, circular economy measures, and innovative finance tools like Carbon Contracts for Difference (CCfDs) to scale low-carbon technologies such as green hydrogen and Direct Reduced Iron (DRI). The document emphasizes that while public funds are insufficient, the green bond market and transition finance instruments can mobilize the necessary private capital, provided there are science-based standards to prevent greenwashing.

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.