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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.

The Climate Bonds Standard 4.0 provides a comprehensive framework for certifying Use of Proceeds (UoP) debt instruments, physical assets, non-financial legal entities, and Sustainability-Linked Debt (SLD). It requires independent verification by accredited verifiers and mandates rigorous disclosure and reporting to maintain certification. For entities and SLDs, the standard emphasizes a 'credible transition' based on five characteristics: alignment with the Paris Agreement, robust planning, implementation of actions, internal oversight, and external reporting. Certification levels are divided into 'Aligned' (already meeting industry standards) and 'Transition' (expected to meet standards by December 31, 2030).

The checklist specifies the requirements for legal entities to obtain and maintain Sustainability-Linked Debt (SLD) certification. It outlines eligibility criteria, the 90% certification threshold for economic activities, and the necessity of a comprehensive Transition Plan including a vision, strategic narrative, and finance plan. It also mandates governance structures, parent group commitments to net zero and the cessation of fossil fuel expansion, and strict public disclosure requirements.

The Climate Bonds Standard version 4.0 provides a science-based framework for certifying Use of Proceeds (UoP) debt instruments, physical assets, non-financial legal entities, and sustainability-linked debt (SLD). It establishes rigorous pre- and post-issuance requirements, including mandatory verification by Approved Verifiers, the development of transition plans, and annual public disclosure of allocation and eligibility. The standard introduces a 'Certification Threshold' for entities and SLDs, requiring 90% of economic activities to be compliant. It also mandates 'Climate Safeguards' for parent groups, including commitments to net zero and the prohibition of fossil fuel expansion after January 1, 2023.

The document analyzes Brazil's public policies for reducing methane emissions in agriculture, noting that while frameworks like the Ecological Transformation Plan and the Brazilian Sustainable Taxonomy exist, there is a lack of specific, targeted incentives for methane abatement in the livestock sector, which is the primary source of these emissions.

The Checklist for Entity Certification outlines the requirements for non-financial entities to be certified under the Climate Bonds Standard v4.0. It details eligibility, the 90% certification threshold for economic activities, the components of a Transition Plan (including climate performance targets, delivery strategy, and finance plans), and governance requirements. It also specifies mandatory commitments for Parent Groups, such as no expansion of fossil fuel activities and net zero commitments, and explains the process for maintaining or losing certification.

The global GSS+ debt market reached a cumulative volume of USD3.7tn by the end of 2022, though new issuance fell 24% year-on-year to USD858.5bn due to rising interest rates and macroeconomic instability. Green bonds remained the dominant theme, accounting for 58% of 2022 volumes at USD487.1bn, while social bonds saw the steepest decline (41%) as COVID-19 recovery funding tapered. Transition bonds were the only segment to grow, increasing 5% to USD3.5bn, driven by policy support in China and Japan. The report also highlights the emergence of sovereign sustainability-linked bonds (SLBs) in Chile and Uruguay and the need for a dedicated Climate Resilience Taxonomy to scale adaptation and resilience (A&R) financing.

The report analyzes the Brazilian sustainable securitization market, highlighting the dominance of green labels and the potential for asset-backed securities (ABS) to fund small-scale sustainable projects in agriculture and energy.

The report analyzes Brazil's sustainable securitisation market, highlighting the role of Agribusiness Receivables Certificates (CRA) and Real Estate Receivables Certificates (CRI) in funding green and social projects. It identifies a significant opportunity to use ABS to aggregate small-scale sustainable projects, particularly in agriculture and renewable energy, to attract institutional capital.

The document outlines a comprehensive framework of 101 sustainable finance policies categorized by three primary ambitions: speed, steer, and simplify. It provides specific recommendations across various government departments—including fiscal, trade, energy, and industrial policy—as well as for central banks and financial regulators. The guide emphasizes the need for science-based targets, the removal of fossil fuel subsidies, the use of green taxonomies, and the implementation of derisking mechanisms like blended finance to mobilize private capital for the 1.5°C transition.

The report evaluates corporate climate alignment using the CCIF, finding that while mitigation efforts (such as GHG reporting and renewable energy procurement) are common, there is a critical lack of detailed climate adaptation planning. Analysis of 483 debt issuers reveals that no company performed well across all three CCIF objectives, and only 14% have an adaptation and resilience plan. Sector-level data shows utilities as the highest performers in reporting and transition, while healthcare and automotive sectors suffer from significant data gaps. Case studies of companies in China, India, South Korea, and Singapore highlight the use of internal carbon pricing and science-based targets, but emphasize the need for better Scope 3 emissions tracking and quantitative physical risk assessments.

The cement sector is a major industrial emitter, accounting for approximately 7% of global CO2 emissions and 4% of EU emissions. The report argues that the current decade is critical because 30% of EU cement kilns will reach the end of their life by 2030, presenting a window to avoid stranded assets by investing in low-carbon technologies. Key technical levers include reducing the clinker-to-cement ratio, implementing carbon capture and storage (CCS), and substituting fossil fuels with biomass and waste. To support this, the report recommends a comprehensive policy suite: upstream (accelerating renewable energy and CO2 infrastructure), midstream (implementing Carbon Contracts for Difference and phasing out ETS free allowances), and downstream (mandating green public procurement and scaling off-take agreements). It also highlights the role of sustainable finance, noting that while sustainability-linked bonds (SLBs) have been issued, their potential in the cement sector remains under-exploited due to a lack of sector-specific standards.

The report finds that green bonds in EUR and USD generally outperformed vanilla equivalents in H2 2022, exhibiting higher book cover and greater spread compression. While the incidence of an outright 'greenium' (pricing inside the yield curve) decreased due to macroeconomic volatility, green bonds still achieved relatively tighter pricing than matched vanilla pairs. Approximately 67% of these bonds were allocated to green or responsible investors. The report also notes a trend of auto manufacturers increasing their use of green labels and a net growth of 11.2% in green bond ETF assets.

The Climate Bonds Initiative provides a certification scheme for entities to validate their climate credentials and transition plans. Certification is available at two levels: Level 1 for entities already aligned with 1.5°C pathways, and Level 2 for those with transition plans predicting alignment by 2030. To be eligible, at least 90% of an entity's activities must be 'Eligible Activities' based on existing Sector Criteria. Certification is valid for five years, requiring annual verification by an approved verifier, and is restricted to non-financial corporate entities.

The document proposes a systematic classification framework to identify and screen climate resilience investments, aiming to bridge the gap between high-level resilience goals and capital market flows. It defines eligibility based on 'Substantial Contribution' to resilience while avoiding maladaptation and significant harm, categorizing investments into a white list, standardized checks, and further assessment. The framework is organized around seven themes: Resilient Agrifood Systems, Resilient Industry & Commerce, Resilient Cities, Resilient Nature & Biodiversity, Resilient Health, Resilient Societies, and Resilient Infrastructure.

The document argues that current agri-food transition finance is often unambitious and lacks alignment with science-based pathways, particularly regarding scope 3 emissions. It introduces five Transition Principles and five Hallmarks to ensure that corporate transition plans are rooted in action rather than pledges, exclude offsets, and align with a 1.5°C trajectory. The paper also reviews various existing frameworks, such as SBTi FLAG and the EU Platform on Sustainable Finance, to identify how they address broader goals like biodiversity, water use, and just transition.

The report finds that while most thematic bonds meet standards, approximately 25% of green bonds and 6% of social and sustainability bonds priced in 2022 were excluded from Climate Bonds databases due to insufficient information or non-aligned Use of Proceeds (UoP). Key issues include the allocation of funds to general working capital in China, the inclusion of roads in social and sustainability frameworks in Japan, and inadequate building standards in the USA and Germany.

The Japanese green bond market continued to expand in 2021, led by financial institutions. Low-carbon buildings and energy are the primary use of proceeds. The market is characterized by high rates of external review and a preference for shorter maturity periods. Japan is also emerging as a leader in transition finance, supported by government guidelines and the introduction of sustainability-linked bonds. The Bank of Japan has introduced funding operations to support climate-aligned investments by financial institutions.