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The report analyzes 21 international taxonomies to provide a framework for a potential Canadian transition taxonomy, emphasizing the need for science-based thresholds to avoid greenwashing in a resource-dependent economy.

The document argues that the short-term debt market, valued at USD55tn, is an underutilised source of green capital. It recommends that short-term debt be labelled green and integrated into thematic investment strategies, provided it aligns with the Climate Bonds Standard or EU Taxonomy. The paper outlines various eligible instruments—including Commercial Paper, Revolving Credit Facilities, and Green Repos—and emphasises the need for a 'pure-play' entity definition to facilitate certification for general corporate funding.

The global GSS+ bond market reached a cumulative issuance of $3 trillion by Q1 2022, despite a nearly 30% year-on-year decline in quarterly issuance due to interest rate hikes and the Russia-Ukraine war. While green and social bonds saw significant decreases, sustainability-linked bonds (SLBs) grew by over 100%, with 61% of their KPIs linked to greenhouse gas emission targets. China led global green bond issuance in Q1 2022, and the period saw the emergence of the first sovereign SLB from Chile and the first public sector SLB from the city of Helsingborg.

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.

The ASEAN+3 sustainable debt market reached USD 449 billion by Q3 2021, driven largely by the People's Republic of China, Japan, and Hong Kong, China. While green bonds remain dominant, the COVID-19 pandemic accelerated the issuance of social and sustainability-labeled instruments. Local currency (LCY) issuance represents 64% of the region's total sustainable debt, though this is unevenly distributed; Thailand has the highest LCY share at 98.5%, while Viet Nam and Indonesia rely heavily on foreign currencies. The report identifies barriers such as lack of market awareness, high transaction costs for small deals, and a shortage of bankable green projects. It recommends increasing sovereign GSS bond issuance, expanding the investor base through ETFs and indices, and establishing centralized sustainable finance platforms to improve project visibility.

China's green bond market experienced record growth in 2021, driven by the nation's '30·60' climate targets and the 14th Five-Year Plan. Annual issuance aligned with Climate Bonds definitions reached USD 68.2 billion, making China the second largest green bond market globally. The market saw a significant shift as non-financial corporates became the primary source of supply, overtaking financial corporates. Over 60% of the use-of-proceeds was directed toward renewable energy. The report also highlights the emergence of carbon neutrality bonds and transition finance as key tools for decarbonizing high-emitting sectors.

The 2021 Chinese green bond market experienced significant growth, with total labeled issuances reaching $109.5 billion. Non-financial enterprises became the dominant issuer type for the first time, and over 60% of funds were directed toward renewable energy. While the market is expanding rapidly, the report highlights a continued reliance on state-owned enterprises and a need for improved transparency and transition finance frameworks to meet long-term climate targets.

The Indian GSS debt market experienced significant growth in 2021, reaching a cumulative volume of USD 19.5 billion, with green bonds dominating the landscape. While the market is primarily driven by non-financial corporates and focused on utility-scale renewable energy, there is emerging activity in sustainability-linked bonds and potential for expansion into electric vehicles, waste management, and climate-smart agriculture. The Indian government is supporting this growth through the Ministry of Finance's Sustainable Finance Task Force and the planned issuance of a domestic sovereign green bond in 2022.

In Q1 2022, the cumulative GSS+ labelled debt market reached USD3tn, though quarterly issuance fell nearly 30% year-on-year to USD202.2bn due to market volatility and rising interest rates. While green and social bond volumes declined, sustainability and sustainability-linked bonds saw growth. The period was marked by the first sovereign sustainability-linked bond from Chile and the first public sector sustainability-linked bond from the City of Helsingborg. The report also highlights the role of the IPCC WG3 report and the war in Ukraine in underscoring the urgency of the energy transition, while noting the emergence of transition bonds in Japan.

The report contends that fossil gas cannot be considered a transition fuel due to significant methane leakage and the need for rapid decarbonisation by 2030. It argues that the EU's Complementary Delegated Act threatens the credibility of the EU Taxonomy by allowing fossil gas as a transitional activity. The document advocates for a rapid shift to low-carbon hydrogen, prioritised for hard-to-abate sectors, and warns against 'gas blending' as an inefficient decarbonisation strategy. It recommends the use of additionality requirements for electrolysers to prevent them from cannibalising renewable energy growth and suggests various financial mechanisms, including Carbon Contracts for Difference (CCfDs) and green public procurement, to mobilise investment. The report also emphasizes the need for a Just Transition to protect workers and low-income households from the regressive effects of carbon pricing.

The report analyzes the 2021 Chinese green bond market, which saw a sharp rebound with USD 109.4bn in total issuance. It highlights the role of top-down policy guidance, such as the Green Bond Endorsed Project Catalogue (2021 Edition), in standardizing the market and aligning it with international principles. The analysis finds a positive correlation between local policy efficacy scores and the volume of green bond issuance, particularly in economically developed regions like the Yangtze and Pearl River Deltas. However, stakeholders identify challenges including inadequate information disclosure and a lack of issuer experience in identifying green assets. The report recommends strengthening disclosure standards, developing transition finance frameworks, and expanding innovative products like sustainability-linked bonds to support high-emitting sectors.

The 2021 China Green Bond Investor Survey reveals a strong demand for high-quality green bonds, particularly in renewable energy and low-carbon transport. While investors value green credentials and credit fundamentals, they highlight significant gaps in transparency and post-issuance disclosure. International investors face barriers related to market access and regulatory quotas. The report emphasizes the need for standardized green definitions aligned with international benchmarks and the adoption of TCFD recommendations to enhance market integrity and attract global capital.

The report examines China's green finance landscape in 2021, highlighting the role of top-down policies in driving the green bond market. It identifies a positive correlation between regional policy stimulus and bond issuance volumes, while noting that economic disparities limit policy effectiveness in less developed provinces. The document also analyzes the alignment of Chinese green bonds with international standards and provides recommendations for improving information disclosure and developing transition finance.

The report finds that while China has a stringent regulatory framework for green bond reporting, actual post-issuance disclosure—particularly regarding environmental impacts—is lower than global averages. UoP reporting is more common than impact reporting, with financial institutions showing higher compliance due to stricter PBoC requirements. The study highlights a unique Chinese reliance on 'fossil fuel savings' as a metric and recommends shifting toward GHG and energy savings to align with international standards. While the quality of impact reporting among those who do report is generally high, the report notes significant inconsistencies across different bond types and regulatory bodies.

The report analyzes the vulnerability of ASEAN economies to climate transition risks, highlighting a significant reliance on fossil fuels for electricity generation. It finds that carbon-intensive sectors represent approximately 25% of corporate bond issuance in the region, with a substantial portion of loans and bonds facing refinancing risks by 2030. The authors argue that current industrial classification systems are inadequate for identifying these risks and recommend that ASEAN central banks develop comprehensive 'green' and 'brown' taxonomies to enhance climate risk disclosures and manage potential asset stranding.

The report outlines Indonesia's need for USD 322.8 billion in climate-compatible infrastructure by 2030, focusing on renewable energy, low-carbon transport, sustainable water, and waste management. It highlights a significant financing gap and argues for the use of green bonds, blended finance, and de-risking mechanisms to attract private investment. The document also details the role of the SDG Indonesia One platform and the ASEAN Catalytic Green Finance Facility in bridging these gaps.

The report examines the global trend of establishing green taxonomies to define sustainable economic activities and reduce 'greenwashing'. It details three primary methodology types: whitelist-based, technical screening criteria-based, and principle-based. A significant portion of the document compares the EU's six-objective framework with China's three-objective system, highlighting the 'Common Ground Taxonomy' as a tool to improve interoperability between the two markets. The report concludes that while taxonomies are essential for product development and risk management, challenges remain regarding data quality and the need to incorporate transition guidelines for high-emission industries.

The report examines the rise of green taxonomies as classification systems to identify sustainable economic activities and reduce greenwashing. It identifies three primary development approaches: whitelist-based, technical screening criteria (TSC) based, and principle-based. A central focus is the alignment between the EU and China taxonomies via the International Platform on Sustainable Finance (IPSF) and the Common Ground Taxonomy (CGT), which aims to facilitate cross-border green capital flows. The document details how these taxonomies are implemented by regulators for mandatory disclosure and by financial intermediaries for product development and risk management.

The report examines how financial aggregation—bundling small-scale energy assets into portfolios—can address the financing gap for distributed renewable energy (DRE) in developing countries. It identifies general SME financing barriers and specific aggregation hurdles, such as lack of track records and currency risk. The document proposes enablers including digital data solutions, standardisation of KPIs, and the use of green, social, and sustainability (GSS) bonds to attract institutional investors. While the market is nascent, the report highlights early successes in Rwanda, Côte d'Ivoire, and Brazil as blueprints for scaling clean energy access.

The document analyzes the EU's Carbon Border Adjustment Mechanism (CBAM) as a shift in climate policy toward trade and economic levers. It highlights the growth of carbon pricing globally, including the EU ETS and China's national ETS, and suggests that COP26 should be used to establish a 'green window' for preferential treatment of green goods and a mechanism to allocate CBAM revenues to vulnerable countries to ensure a just transition.