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The report highlights that China's steel industry requires at least 1.6 trillion yuan (approximately 220 billion USD) in fixed asset investment to achieve decarbonisation by 2050. While technical feasibility for zero-carbon steel exists, high costs remain a barrier. The document argues that transition finance, carbon pricing mechanisms like the EU's CBAM, and green public procurement are essential to drive investment toward deep decarbonisation technologies, such as low-carbon hydrogen, and to avoid 'carbon lock-in' as 78% of existing coal-based blast furnace capacity requires reinvestment by 2030.

The report highlights that China's steel sector requires at least CNY1.6tn (USD220bn) in fixed-asset investment for decarbonisation by 2050. While the labelled bond and loan markets have the capacity to provide this capital, current issuance from the steel sector is minimal, representing only 0.1% of the Chinese labelled bond market. The document recommends aligning provincial transition finance guidelines with national and international standards, encouraging the use of greenhouse gas (GHG) emission-reduction targets in sustainability-linked bonds (SLBs), and implementing green public procurement to stimulate demand for low-carbon steel.

The guidelines establish a framework for GSS+ labelled financial instruments in Panama, aligning with international standards like ICMA and the Climate Bonds Standard. It details the requirements for use-of-proceeds instruments (green, social, sustainability) and general-purpose sustainability-linked instruments, emphasizing transparency, external reviews, and impact reporting. The document also highlights Panama's Sustainable Finance Taxonomy and the broader sustainable debt market trends in Latin America and the Caribbean.

Mexico's sustainable debt market reached a cumulative GSS+ volume of USD 55.7bn by the end of 2023, with sustainability bonds emerging as the dominant instrument. The market is heavily driven by the public sector, particularly the federal government and development banks, though private corporate participation is increasing. The report highlights the introduction of the Mexican Sustainable Taxonomy in March 2023 as a key development to guide investments. While Mexico is a global leader in sustainability bond volume, challenges remain in the sustainability-linked bond (SLB) market regarding the credibility of GHG targets. Key opportunities for growth are identified in renewable energy, sustainable agriculture, and low-carbon construction, supported by trends such as US nearshoring.

Mexico's sustainable debt market (VSS+) reached a cumulative volume of $55.7 billion by the end of 2023, with $38.3 billion aligned with Climate Bonds methodology. The market is dominated by sustainable bonds (72% of aligned volume) and heavily driven by the public sector, including sovereign emissions and development banks like Banobras. While Mexico led the world in sustainable bond issuance in 2023, challenges remain in the alignment of sustainability-linked bonds (SLBs) due to a lack of greenhouse gas (GHG) targets. The report highlights the 2023 launch of the Sustainable Taxonomy of Mexico as a key tool for guiding future investments in sectors such as renewable energy, sustainable construction, and agriculture.

The Climate Bonds Initiative's Agriculture Production Criteria provide a framework for certifying agri-food production assets and entities. The criteria focus on two primary mitigation elements: reducing absolute greenhouse gas emissions (specifically N2O, CH4, and CO2) and sequestering carbon in agricultural soils and biomass. A mandatory precondition for all certifications is that the land must be deforestation- and conversion-free (DCF). For entities and sustainability-linked debt, the document defines 'Aligned' and 'Transition' tiers based on whether the entity's emission intensity meets a 1.5°C transition pathway immediately or by 2030. The framework also incorporates mandatory safeguards for climate adaptation and resilience, biodiversity, water management, social standards, and animal welfare to prevent unintended negative impacts.

The report outlines the development of updated eligibility criteria for agriculture production (crop and livestock) under the Climate Bonds Standard. It establishes a science-based framework for transition finance, focusing on absolute intensity pathways to reach net-zero by 2050. The document details mitigation strategies, including the reduction of methane and nitrous oxide and the enhancement of carbon sequestration, while introducing safeguards for adaptation, biodiversity, water, and animal welfare.

The report argues that credible transition plans are essential to mitigate 'greenwashing' risks and attract diverse financing for the power sector's decarbonization. It highlights the prevalence of Sustainability-Linked Bonds (SLBs) in the power industry and provides a framework for developing transition plans and selecting appropriate financial instruments.

The report argues that for China's power sector to meet its 2030 peak emissions and 2060 carbon neutrality targets, electrical utilities must develop credible, science-based transition plans. These plans serve as the foundation for transition finance instruments, such as Use of Proceeds (UoP) bonds and sustainability-linked bonds (SLBs). While China is a major global issuer of SLBs, the report notes a lack of alignment with rigorous standards, as many domestic issuers focus on renewable energy capacity rather than comprehensive greenhouse gas (GHG) emission reduction targets. The document provides a framework for utilities to develop transition plans and select appropriate financial tools to support low-carbon development, including the retirement of coal assets and grid optimisation.

The report highlights that steel and cement are the largest industrial emitters, accounting for over 7% and 6% of global CO2 emissions in 2022. It argues that credible corporate transition plans are essential for unlocking private capital, particularly through sustainability-linked bonds (SLBs). An analysis of 20 companies reveals that while 90% have published transition plans, there is a significant lack of consistency in financing disclosure and a critical gap in concrete 'just transition' objectives. The document emphasizes that emerging markets will lead demand growth and hold the majority of coal-based blast furnace capacity requiring reinvestment by 2030, making international coordination and supportive public procurement policies vital for a credible transition.

The report details a record-breaking Q1 2024 for aligned GSS+ debt, with USD 272.7bn added. Green bonds dominated the market, while Europe remained the primary regional source. The report also highlights the growth of sovereign GSS+ issuance, the emergence of nuclear energy in green bond frameworks in North America, and the evolving alignment of sustainability-linked bonds (SLBs) with Climate Bonds' methodology.

The Climate Bonds Standard version 4.2 provides a science-based framework for certifying climate-aligned investments. It covers four primary certification paths: Use of Proceeds (UoP) debt instruments, specific assets, non-financial legal entities, and sustainability-linked debt (SLD). Certification requires independent verification by approved third parties and adherence to sector-specific criteria. For entities and SLDs, the standard emphasizes absolute measures tied to transition pathways, requiring climate mitigation performance targets (CMPTs) and robust transition plans. The standard also includes a specialized certification for agri-food entities focusing on deforestation- and conversion-free sourcing.

In 2023, Hong Kong's aligned GSS+ debt volume grew by 236% to USD 18.2 billion, driven primarily by the HKSAR Government's green bond issuance. The market is characterized by a strong preference for green-themed debt, with low-carbon buildings and land use as the primary use-of-proceeds categories. While the HKSAR Government dominates the local market, the Hong Kong Stock Exchange remains a key hub for offshore Chinese green bonds. The report also highlights the emergence of transition finance frameworks in mainland China and the introduction of the Hong Kong Taxonomy for Sustainable Finance to improve interoperability with international standards.

The report argues that fiscal policies—including roadmaps, tax incentives, guarantees, and subsidies—are essential to bridge the net-zero investment gap in the ASEAN+3 region. It identifies critical barriers such as a lack of suitable project pipelines, regulatory uncertainty, and the predominance of MSMEs. The document recommends a holistic approach combining these fiscal tools with non-fiscal policies like green taxonomies and mandatory climate disclosures to steer the financial sector toward sustainable development goals.

The Climate Bonds Initiative introduces a tool for financial institutions to evaluate corporate transition maturity across five categories, ranging from 'No Action' to 'Net Zero Achieved'. The system uses specific indicators across commitment, emission targets, implementation strategies, governance, and performance to determine if a company's financing can be labeled as 'transition finance' or 'green finance'. It emphasizes the need for science-based benchmarks, trackable annual actions, and board-level governance, while providing a weighted scoring method for companies with multiple business activities.

The Climate Bonds Initiative presents a tool for financial institutions to classify corporate transition maturity into five categories: No action, Committed, Aligning, Aligned, and Net zero. The system uses specific indicators across five components—Commitment, Emissions Targets, Delivery Strategy, Governance, and Performance—to determine a corporate's status. It distinguishes between 'short-term+' and 'full-term' plans within the 'Aligning' category and allows 'Climate Solutions' to be categorised as 'Aligned' for a limited period. The guide also provides a weighted-average methodology for corporates with multiple business activities and suggests that financing for corporates in the 'Aligning' and 'Aligned' categories can be considered 'transition finance'.

In 2023, China maintained its position as the world's largest green bond market, though issuance volume saw a slight decrease. The market is characterized by a strong focus on renewable energy and low-carbon transport, with increasing alignment with international standards like the CBI definitions and the Common Ground Taxonomy. While social and sustainable bonds saw a rebound in volume, they face challenges regarding information disclosure and the use of proceeds for general operations. Sustainability-linked bonds (SLBs) remain globally leading in volume, but few issuers utilize greenhouse gas emission reduction targets. Policy progress includes the introduction of the 'Green Bond Principles' and the emergence of local transition finance guidelines in cities like Shanghai and Chongqing.

In 2023, China maintained its position as the world's largest green bond issuance market, despite a slight decline in total volume. The market is characterized by a strong preference for short-dated debt and a growing reliance on Second Party Opinions to enhance credibility. While green bonds are increasingly aligned with the 100% Use of Proceeds (UoP) rule, social and sustainability bonds face challenges with transparency and disclosure. Sustainability-linked bonds (SLBs) are prolific in number but rarely utilize greenhouse gas (GHG) reduction targets. Policy drivers include the China Green Bond Principles and the China-EU Common Ground Taxonomy, alongside emerging local transition finance guidelines for hard-to-abate sectors like steel and chemicals.

The report finds that the aligned GSS+ debt market reached a cumulative volume of USD 4.4 trillion by the end of 2023. Green bonds remain the dominant theme, with 2023 aligned volume reaching USD 587.6 billion, while sustainability and social bonds saw year-on-year declines. Conversely, aligned SLB volume grew by 95% to USD 22.9 billion. Europe was the largest source of aligned GSS+ debt in 2023, while the USA experienced a 38% decline due to anti-ESG sentiment. The report also highlights the growth of 'blue-labelled' debt and the increasing role of sovereign issuers in the GSS+ market.

The document defines the 'Agri-Food Deforestation and Conversion Free Sourcing' criteria for entities in the food value chain. It mandates a cut-off date of 31 December 2020, requiring that sourcing be free from deforestation and natural ecosystem conversion. The criteria specify different traceability and due diligence requirements based on the risk classification of the origin, with a commitment to full geolocation for all commodities by 2030. It also integrates human rights safeguards and annual verification processes to ensure climate integrity for certified entities.