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The EU Regulation on Deforestation-Free Products (EUDR) mandates strict due diligence and geolocation traceability for specific commodities to ensure they are not linked to deforestation after December 31, 2020. While currently targeting operators and traders, the regulation may expand to financial institutions by mid-2025. The Climate Bonds Initiative is developing transition pathways and certification criteria to help agri-food companies move beyond legal compliance toward best practices in sustainability.

The document outlines the technical framework for certifying low-carbon buildings under the Climate Bonds Standard. It shifts the focus from energy use intensity to emissions intensity, establishing city-specific linear trajectories aimed at net-zero carbon emissions by 2050. The criteria distinguish between new and existing buildings, introducing mandatory Whole Life Carbon Assessments (WLCA) for new constructions to account for embodied carbon. It also provides a guide for Scope 3 GHG accounting across the building value chain, from manufacturers to owners and deconstruction firms.

The cement industry accounts for approximately 7% of global CO2 emissions and faces significant barriers to decarbonisation due to high capital intensity and the nature of process emissions. The report argues that achieving net-zero by 2050 requires a combination of technological shifts—such as carbon capture and storage (CCS), alternative binders, and fuel substitution—and robust policy support. Key policy recommendations include the implementation of carbon contracts for difference (CCfDs), green public procurement, and carbon border adjustment mechanisms (CBAMs) to prevent carbon leakage. Financial investment needs are estimated to reach USD 70 billion annually between 2030 and 2040, which the report suggests could be unlocked through the sustainable debt market and science-based certification standards.

The report positions the Chief Financial Officer (CFO) as a pivotal figure in the low-carbon transition, responsible for integrating climate risks and opportunities into a company's financial framework. Based on a survey of 50 respondents from 32 entities, it argues that early adoption of decarbonisation strategies provides a competitive advantage and recommends building robust business cases that quantify the cost of inaction. The document highlights the use of sustainable finance instruments, such as green and sustainability-linked bonds, to mobilise capital and signal commitment. Key challenges identified include the calibration of science-based targets and the difficulty of tackling scope 3 emissions, which often represent the majority of a company's carbon footprint.

The Climate Bonds Initiative's Hydrogen Criteria define the technical and environmental benchmarks required for hydrogen-related financial instruments to be certified as green. The framework focuses on carbon intensity thresholds, decarbonisation measures, and adaptation and resilience requirements across the hydrogen value chain, from production to storage and delivery.

The sustainable debt market in Latin America and the Caribbean (LAC) reached a cumulative total of USD 154.1 billion by the end of 2022. While the region represents only 4% of global sustainable debt, these instruments account for approximately 21% of the region's total debt volume from 2019 to 2022. The market is led by Chile, Mexico, and Brazil, with a strong presence of sovereign issuers and development banks. Key trends include the rise of sustainability-linked bonds (SLBs), the emergence of 'blue bonds' for ocean conservation, and the development of national taxonomies in Colombia and Mexico to standardize sustainable investments.

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.

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 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 document outlines 12 key policy interventions to accelerate the transition of hard-to-abate sectors, categorised into simplifying pathways, steering risk and opportunity, derisking green investments, and facilitating essential resource flows.

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 Climate Bonds Initiative (CBI) establishes a screening process for sustainability-linked bonds (SLBs) to ensure they drive genuine decarbonisation. Inclusion requires eligible debt instruments to be self-labelled as SLBs and provide public disclosure of sustainability performance targets (SPTs). CBI assesses these targets against 1.5°C-aligned sectoral pathways from CBI, the Transition Pathway Initiative (TPI), the Science Based Targets Initiative (SBTi), and CRREM. Bonds are categorized as 'Fully-aligned', 'Strongly-aligned', 'Aligning', or 'not-aligned' based on their adherence to these pathways and the presence of comprehensive transition plans. The methodology specifically mandates scope 3 emission targets for companies selling fossil fuel products and airports.

The Climate Bonds Initiative (CBI) establishes a methodology to track Sustainability Linked Bonds (SLBs) that support decarbonization. To be included, instruments must be certifiable debt, self-labeled as SLBs or similar, and provide sufficient disclosure of Sustainability Performance Targets (SPTs). CBI assesses these targets against 1.5°C-aligned industry pathways, categorizing bonds as 'Fully-aligned', 'Strongly-aligned', or 'Aligning' based on their consistency with these paths and the presence of comprehensive transition plans. The methodology emphasizes the inclusion of material emissions (Scopes 1, 2, and 3) and utilizes both CBI-specific and third-party pathways (e.g., TPI, SBTi, CRREM) to evaluate various sectors including cement, steel, and aviation.

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 document outlines the benefits and application of the Climate Bonds Initiative's certification for commercial and residential buildings in Tokyo and 16 other Japanese cities, aiming for a zero-carbon future by 2050.

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.