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1、SUSTAINABLE DEBTGLOBAL STATE OF THE MARKET 2023Green$2.8tnSustainability$768bnSLB$48.6bnSocial$821bn$4.4tn Cummulative Aligned GSS+Prepared by Climate Bonds InitiativeSustainable Debt Global State of the Market 2023 Climate Bonds Initiative 21.IntroductionThis is the 13th iteration of Climate Bonds

2、Initiatives(Climate Bonds)Global State of the Market Report.The scope of this report includes analysis of green,social,and sustainability(GSS)bonds considered to be in alignment with Climate Bonds database methodologies(Appendix)plus sustainability-linked bonds(SLBs).Contents1.Introduction 22.Report

3、 highlights 33.Green 54.Sustainability 95.Social 126.Sustainability-linked bonds 147.The sovereign GSS+bond club 188.Adaptation and Resilience 209.Spotlight:Blue-labelled volume swells in 2023 2210.Policy spotlight 2511.Outlook 27Appendix 28References 30Aligned GSS+scorecard Green Social Sustainabil

4、ity SLB Aligned GSS+Total size of market(cumulative)USD2.8tnUSD821bnUSD768bnUSD48.6USD4.4tnNumber of countries96496923106Number of currencies5346431264About the Climate Bonds InitiativeClimate Bonds is an international organisation working to mobilise global capital for climate action.It promotes in

5、vestment in projects and assets needed for a rapid transition to a low-carbon,climate-resilient,and fair economy.The mission focus is to help drive down the cost of capital for large-scale climate and infrastructure projects and to support governments seeking increased capital markets investment to

6、meet climate and greenhouse gas(GHG)emission reduction goals.Climate Bonds conducts market analysis and policy research;undertakes market development activities;advises governments and regulators;and administers a global green bond Standard and Certification scheme.Climate Bonds screens green financ

7、e instruments against its global Taxonomy to determine alignment,and shares information about the composition of this market with partners.The Climate Bonds team has also expanded its analysis to other thematic areas,such as social and sustainability bonds via the development of screening methodolog

8、ies for investments that give rise to positive social impacts and added resilience.Certification against the Climate Bonds Standard(CBS)represents about 20%of global green bond market volumes.This scheme is underpinned by rigorous scientific sector-specific Criteria to ensure that Certified bonds an

9、d issuers are consistent with the well-below 2C target of the Paris Agreement.Obtaining and maintaining Certification requires initial and ongoing third-party verification to ensure the assets meet the metrics of sector Criteria.Climate Bonds Certification SchemeCertification under the Climate Bonds

10、 Standard v4(CBS v4)goes beyond Use of Proceeds(UoP)instruments to include non-financial corporate entities and their SLBs.Launched in April 2023,the CBS v4 leverages Climate Bonds transparent science-based Criteria for non-financial corporate entities,credible SLBs and similar instruments,and provi

11、des assurance for investors that sustainability requirements have been met in respect of any Certified issuance.This work goes beyond sectoral transition pathways and includes key governance elements that indicate a companys preparedness to transition to net zero.Certification can be obtained by cor

12、porates with emissions already near zero as well as those with activities in high-emitting sectors,providing the corporate has suitably ambitious performance targets and credible transition plans.CBS v4 enables corporates aligned with 1.5-degree pathways,or those that will be aligned by 2030,to obta

13、in Certification.SLBs issued by and in respect of the activities of qualifying non-financial corporates can also be Certified under the CBS v4.By the end of 2023,Climate Bonds had recorded USD5.5tn of cumulative GSS and SLB(collectively GSS+)volume,of which USD4.4tn(80%)was found to be aligned.This

14、indicates strong appetite for thematic debt,with the difference between the two numbers highlighting the rigour of Climate Bonds curation.This report describes the shape and size of the aligned GSS+debt market as of 31 December 2023.CLIMATE BONDS STANDARDGlobally recognised,Paris-aligned Certificati

15、on of Debt Instruments,Entities and Assets using robust,science-based methodologiesUpdated February 2024Version 4.1Sustainable Debt Global State of the Market 2023 Climate Bonds Initiative 3By 31 December 2023,Climate Bonds had recorded aligned GSS+instruments with cumulative volume of USD4.4tn from

16、 more than 43,000 instruments.In 2023,Climate Bonds captured aligned volume of USD871.6,3%more than the 2022 figure of USD842.8bn.Two thirds of this(67.5%)were from the green theme which added USD587.6bn reflecting a 15%YOY increase.Conversely,there was a YOY decline in the volume of social and sust

17、ainability bonds by 7%and 30%respectively.The smallest segment,SLBs experienced a remarkable 95%increase in aligned volume,reaching USD22.9bn compared to USD11.7bn in 2022,and Climate Bonds expects the aligned SLB market to grow rapidly in 2024.GSS+market at a glance Two thirds of the aligned deals

18、were priced under the green theme worth USD587.6bn followed by social,sustainability,and SLB.Europe was the largest source of aligned GSS+debt instruments with volume of USD405bn representing 46%of the 2023 total.The LAC region delivered a 49%spike YOY.Conversely,anti-ESG sentiment affected aligned

19、GSS+volume in the USA resulting in a 38%decline.Aligned SLB issuance exhibited an 95%increase in 2023,with deals from 32 issuers.Climate Bonds published its Sustainability-Linked Bond Database Methodology in 2023,and a corresponding data product was launched in early 2024.In 2023,7323 aligned deals

20、were priced which was 14%fewer than the previous year.May was the busiest month of the year with aligned GSS+volume reaching USD88.5bn from 156 issuers.GSS+deals were priced in 44 currencies with 63%of the issuance from the top two currencies,EUR(USD339.5bn)and USD(USD212bn).The sovereign GSS+market

21、 reached a critical milestone in 2023 as Brazil became the 50th aligned issuer with its November sustainability deal.Cumulative sovereign GSS+volume had reached USD485.6bn by the end of the year.2.Report highlightsAligned GSS+issuance increased to USD870bn in 2023200400600USD Billions1000GreenSLBSoc

22、ialSustainability800200202021202220230Aligned GSS+issuance peaked in May with USD88.5bn102030USD Billions6040JulyJanuaryMayMarchSeptemberNovemberAugustFebruaryJuneAprilOctoberDecember500North America 11%LAC 6%Europe 46%Asia-Pacific 33%Europe was the largest source of 2023 aligned volumeAf

23、rica 1%Supranational 3%CNY 11%KRW 7%GBP 5%EUR 46%USD 29%63%of aligned GSS+deals were EUR and USD in 2023 Others 2%Source:Climate Bonds InitiativeSource:Climate Bonds InitiativeSource:Climate Bonds InitiativeSource:Climate Bonds InitiativeGreenSLB SocialSustainabilitySustainable Debt Global State of

24、the Market 2023 Climate Bonds Initiative 42023 USD587.6bn 846 2743 68 372023 USD107.8bn 221 1009 44 252022 USD509.5bn 815 3848 54 332022 USD156.7bn 223 1115 43 30Size of market Number of issuersNumber of instruments Number of countriesNumber of currenciesSize of market Number of issuersNumber of ins

25、truments Number of countriesNumber of currenciesAligned green debt scorecard Aligned sustainability debt scorecard Change YOY 15.23%3.8%-28.72%25.93%12.12%Change YOY -31.27%-0.9%-9.51%2.33%-16.67%2023 USD153.3bn 190 3540 32 322022 USD164.8bn 218 3510 34 30Size of market Number of issuersNumber of in

26、struments Number of countriesNumber of currenciesAligned social debt scorecard Change YOY -6.97%-12.84%0.85%-5.88%6.67%2023 USD22.9bn 32 45 13 82022 USD11.7bn 24 33 13 8Size of market Number of issuersNumber of instrumentsNumber of countriesNumber of currenciesAligned SLB scorecard(includes the alig

27、ned,strongly aligned,and aligning categories from Climate Bonds SLB Database)Change YOY 95.4%33.33%36.36%0%0%Sustainable Debt Global State of the Market 2023 Climate Bonds Initiative 5Green bond market highlights 2023 In 2023,aligned annual volume reached USD587.6bn breaking through the half trillio

28、n mark for the third consecutive year,and demonstrating an increase of 15%YOY.Aligned sovereign green volume increased by 45%to USD120bn against USD83bn in 2022.Europe dominated the aligned green bond market with volume USD309.6bn.The largest individual issuer was the United Kingdom(sovereign)with a

29、ligned issuance of GBP18.3bn(USD22.5bn)composed entirely of taps.In 2023,private sector issuers returned to the green bond market in force,as aligned issuance from non-financial corporate issuers grew by 29%YOY.May was the most prolific month in 2023 with aligned green issuance of USD61.6bn.Europe d

30、elivers more than half of aligned green bondsMore than half of the 2023 aligned green bond volume originated from Europe(53%)contributing USD309.6bn,and 23%growth compared to the USD250.8bn captured in 2022.The ten largest issuers accounted for 39%of the volume,led by the United Kingdom which added

31、GBP18.3bn(USD22.5bn)through multiple reopenings of its sovereign green bonds.Aligned green bonds emerged from Albania,Cyprus,Macedonia,and Montenegro for the first time in 2023.Asia-Pacific was the second most prolific region for 2023 green bond issuance contributing one-third of the total aligned i

32、ssuance volume(USD189.4bn)with 44%of that amount coming from China.Green issuance from Africa picked up significantly with a YOY increase of 326%compared to 2022.Aligned volume was recorded at USD2bn in 2023 with the largest contributions coming from African Development Bank(USD521m)and Kenya Power

33、and Lighting Company(USD300m).The number of issuers in Africa increased to eleven compared with only four in 2022.North America(which includes the USA and Canada)and LAC recorded a decrease of 22%and 20%respectively YOY,with aligned volume of USD64.5bn and USD4.6bn.From North America,California Comm

34、unity Choice Financing Authority(CCCFA)was the largest contributor with USD5.9bn,while in LAC,SQM Chile SA recorded the largest volume with USD750m.3.GreenThe CCCFA is a Joint Powers Authority established to reduce costs for its members through pre-payment of long-term renewable energy power purchas

35、e agreements.By January 2024,it had issued nearly USD9bn of prepayment bonds for community choice energy providers,saving participating community choice ratepayers over USD45m annually since it was created in 2021.In 2023,it was the largest issuer of aligned green bonds in the USA,with 45 deals toge

36、ther worth USD5.9bn,and UoP earmarked for Renewable Energy.A total of 2743 aligned green bonds were recorded in 2023,a decline of 29%compared to 3848 in 2022.There was a 49%drop in the number of such deals originating from the USA,which fell to 1231against 2422 in 2022.This translated into a 14%drop

37、 in volumes to USD59.9bn from USD70bn,suggesting that the green bond market attracted fewer smaller issuers in the USA.The three most prolific issuers of 2023 by deal count were Fannie Mae(83 deals with combined volume of USD2.8bn),New York State Environmental Facilities Corp.(69 deals with combined

38、 volume of USD237m),and Indiana Finance Authority(53 deals with combined volume of USD563m)all from the USA.TOP 3 NON-SOVEREIGN ISSUERS1.KfW(USD14bn)2.EIB(European Investment Bank)(USD13.64bn)3.European Union(USD11.6bn)TOP 3 COUNTRIES1.China(USD83.5bn)2.Germany(USD67.5bn)3.USA(USD59.8bn)California C

39、ommunity Choice Financing Authority TOP 3 ISSUER TYPES1.Non-Financial Corporate(USD171.7bn)2.Financial Corporate(USD147.9bn)3.Sovereign(USD119.6bn)TOP 3 DEAL CURRENCIES1.EUR(USD260bn)2.USD(USD126.7bn)3.CNY(USD79.2bn)Europe led on 2023 aligned green volume100USD Billions3002000AfricaAsia-PacificNorth

40、 AmericaLatin AmericaSuprana-tionalEuropeThe number of aligned green deals declined by 13%YoY200040006000Number of securities8000200202021202220230Source:Climate Bonds InitiativeSource:Climate Bonds InitiativeThe 2023 green bond market in numbersSustainable Debt Global State of the Market

41、 2023 Climate Bonds Initiative 6Africas green bond trajectoryAfrica is one of the most vulnerable regions to climate risks.In 2023,it achieved its largest volume of aligned green bonds since the African Development Bank(AfDB)priced the regions first green bond in March 2010.A total of eleven issuers

42、 priced 21 deals with combined volume of USD1.96bn in a mixture China is the leading country sourceChina maintained its position as the largest source of aligned green bond volumes for the second time in a row contributing to 14%of the total in 2023.Chinas issuance for the year stood at USD83.5bn,a

43、drop of 4%on the USD86.5bn captured in 2022.Germany ranked second with USD67.5bn of aligned volume,or 11%of the total,and a 6.8%YOY increase.The top two issuers,the German government and KfW accounted for almost half of the volume originating from Germany,together pricing USD32.7bn.The US green bond

44、 market has been marked by a notable prevalence of smaller deals from numerous issuers.In 2023,1231 deals were priced in the US market with an average deal size of USD48.6m.China delivered 288 deals,10%of the total and the second largest by number.Albania,Cambodia,Cape Verde,Cyprus,Macedonia,Mongoli

45、a,Montenegro,and Uzbekistan all issued debut green bonds.Altogether,17 instruments worth USD1.6bn originated from these countries in 2023.Uzbekistans UZS4.2tn(USD348m)2026 sovereign bond was one of three green instruments to come from the country in 2023,and the largest deal from the first-time gree

46、n bond issuer countries.Uzbekistans sovereign green bond will finance water conservation technologies,advancement in railway and metro transportation,sanitation and cleanliness operations in settlements,and the establishment of tree groves to combat wind erosion and sand encroachment at water manage

47、ment sites.China was the largest source of green volume in 2023GermanyUKFranceItalySpainHong KongChinaSupranationalUSANetherlandsIssuer countAmount issuedUSD BillionsNumber of issuers5040000200160000OthersTop 10 aligned green issuers in 2023 Issuer nameUSDbnUnited Kingdom22.5Germany18.8It

48、aly15.0Hong Kong SAR14.4KfW14.0EIB13.6European Union11.6Austria 11.4France10.7ICBC9.9Eleven African issuers priced green bonds in 2023Issuer nameCountryInstrument TypeNumber of dealsCurrencies deployedTotal amount issued USDmAfrican Development Bank(AfDB)SNATBond8SEK,NOK,AUD521.4OCP GroupMoroccoLoan

49、2EUR216.6FirstRand BankSouth AfricaBond2ZAR184.6ACWA PowerEgyptLoan2USD288.0Equatorial Coca-Cola Bottling CompanyEgyptLoan1USD71.0guas de Ponta Preta(APP)Cape VerdePrivate Placement1CVE5.0Kenya Power and Lighting CompanyKenyaLoan1USD300.0Anergi TurkanaKenyaLoan1USD54.0Red Sea Wind EnergyEgyptLoan1US

50、D100.0Bui Power AuthorityGhanaLoan1USD24.0Copperbelt Energy Corporation (CEC Renewables)ZambiaPrivate Placement1USD200.0Grand Total211.96bnSource:Climate Bonds Initiativeof currencies.Green loans were deployed by seven of the isusers,highlighting the potential for this instrument type to support gre

51、en development in the region.The AfDB was the largest of the 2023 issuers,pricing eight bonds worth USD521m.The Use of Proceeds(UoP)were earmarked to support four project categories:Low-Carbon Energy,Sustainable Mobility,Energy Efficiency,and Sustainable Water and Wastewater Management.Sustainable D

52、ebt Global State of the Market 2023 Climate Bonds Initiative 7Hard currencies prevailEUR dominated the green debt market for the sixth consecutive year with 44%of the aligned volume amounting to USD260.2bn spread over 401 instruments.The USA was the second most prominent currency with USD126.7bn of

53、the volume from 1353 instruments.Of the aligned green volume,87%came from five currencies:EUR,USD,CNY,GBP,and INR.The INR experienced a massive YOY surge of 2454%reaching USD12.7bn.The largest share of this came from clean energy company ReNew Power in the form of an INR640bn(USD7.8bn)loan,and India

54、s entry into the sovereign green bond market with four aligned deals worth INR260bn(USD3.1bn).GBP also gained substantial momentum,with a 79%YOY surge.This was largely due to an increased presence from the UK which priced GBP18.3bn(USD22.5bn)by tapping green gilts,compared to GBP10.4bn(USD11.5bn)in

55、2022.100%29%of aligned green volume came from non-financial corporate entities20%60%40%80%0%Non-Financial Corporate Financial CorporateSovereignGovernment-Backed EntityDevelopment BankLocal GovernmentPrivate sector brings more than half the green volumePrivate sector issuers in the non-financial,and

56、 financial corporate sectors priced 57%of the green volume in 2023(USD335bn).Non-financial corporate issuers contributed 29%of the 2023 market share spread over 692 aligned green instruments from 384 issuers amassing a sum of USD171.8bn.The Indian-origin company,Renew Power was the largest single no

57、n-financial corporate deal,with its USD7.8bn green loan.The deal was financed by Power Finance Corporation and Rural Electrification Corporation and the UoP was earmarked for a variety of expenditures including solar,wind,hybrid,energy storage,solar modules,cell manufacturing,and green hydrogen.Fina

58、ncial-corporate issuers emerged as the second largest issuer type with a 28%share of aligned green volumes.The 572 instruments amounted to USD163.4bn.Chinese banks dominated,and the top three financial corporate issuers were Industrial Bank Co.Ltd(USD7.1bn),Bank of China(USD6bn),and Industrial and C

59、ommercial Bank of China(USD5.8bn).This contribution from Chinese issuers comes during the third consecutive year of a downturn in the regions housing market.1Aligned volume from local government issuers remained broadly similar YOY with USD11.5bn,against USD11.7bn the prior year.Queensland Treasury

60、Corporation made the largest contribution with an AUD3bn(USD2bn)deal financing low-carbon transport,solar energy,and water infrastructure.SPO volume increasesSecond-party opinion(SPO)was the preferred type of external review in 2023,with a 18%increase in volume YOY.However,the number of instruments

61、dropped by 8%indicating that fewer instruments with large volumes obtained SPOs.Chinese and German entities exhibited the largest growth YOY with 46%and 7%respectively.Climate Bonds promotes enhanced market transparency through disclosure and acknowledges this progress.Investors are increasingly dem

62、anding impartial evidence of the validity of the environmental credentials of green bonds,indicating a heightened awareness of greenwashing risks.Issuers are also eager to steer clear of liabilities resulting from potential errors.In 2023,51 SPO providers were involved in providing reviews for align

63、ed green instruments.CICERO reviewed 375 instruments followed by Sustainalytics with 255 instruments.Top 10 country sources of aligned green bonds 2023CountryVolume USD bnDeal countChina83.5288Germany67.5117USA59.91231UK32.726Supranational31.369Italy30.333France30.042Spain21.845Netherlands20.628Hong

64、 Kong,China15.621Source:Climate Bonds Initiative20020202120222023Largest deal in each issuer type in 2023Issuer typeIssuer nameUSDbnDevelopment BankEIB(European Investment Bank)5.4Financial CorporateBank of Communications 4.3Government-backed EntityEuropean Union6.5Local

65、GovernmentQueensland Treasury Corporation2Non-Financial CorporateRenew Power7.8SovereignRepublic of Italy10.1Sustainable Debt Global State of the Market 2023 Climate Bonds Initiative 8KfW is a national development bank funded by the German government.In 2023,it priced 15 aligned green bonds in nine

66、currencies with a combined volume of USD14bn.In December 2023,KfW updated its Green Bond Framework,effective from January 2024 and has obtained a second-party opinion(SPO)from Morningstar Sustainalytics.2 KfW has since priced two green bonds with AUD and NOK denominations respectively,totalling appr

67、oximately USD1.2bn;and the bank also aims to raise up to EUR13bn from green bonds as a part of its funding plan for FY2024.3 While the bank estimates that 80%to 90%of proceeds raised from its green bonds will be allocated to Green Buildings and Renewable Energy(predominantly solar and wind energy)pr

68、ojects,the new Framework expanded the breadth of the eligible UoP that may be financed by its green bonds.For example,the Bank added new types of passenger transport vehicles like electric planes and vessels and associated infrastructure under Clean Transportation,production of hydrogen under Renewa

69、ble Energy,incorporated new project categories including Forestry,Biodiversity and even some hard-to-abate activities including the production of steel,cement,and basic chemicals,in addition to the categories named in the Green Bond Framework published in early 2022.KfWs updated Green Bond Framework

70、The SPO concludes that most of the eligible green projects set out in the Framework are either partially or fully aligned with the SC Criteria of the corresponding EU Taxonomy activities.4 For instance,the acquisition and construction of building projects aim for those that either comply with the Ef

71、fizienzhaus 40 standard or have life cycle emissions below 24kgCO2e/m2/annum,of which the Effizienzhaus 40 standard translates to an impressive 60%improvement in primary energy demand(PED)relative to the Nearly Zero Energy Buildings(NZEB)standard required in Germany.While the EU Taxonomy only requir

72、es this figure to be 10%for the renovation of buildings,the Bank targets projects that lead to at least a 30%improvement in energy efficiency or to the Effizienzhaus/Effizienzgebude 85 standard,which is equivalent to a 15%improvement in PED relative to NZEB,once again surpassing the EU Taxonomys req

73、uirement.Only a small number of the project categories are not aligned with the SC Criteria of the EU Taxonomy,such as hydroelectric and geothermal power generation,and KfW does not expect to allocate a meaningful share of the proceeds to such assets either.Nevertheless,the broadened Framework allow

74、s KfW to support a much more diverse range of assets under its loan programmes including the Climate Protection Programme for Corporates,accelerating Germanys transition towards net zero.The Common Ground Taxonomy(CGT)is a milestone work resulting from an in-depth comparison exercise that puts forwa

75、rd areas of commonality and differences between the EU and Chinas green taxonomies.The scope covers substantial contribution criteria for climate change Steel production in China financed by Bank of China(Luxembourg Branch)Steel production accounts for around 7%of worldwide energy-related CO emissio

76、ns,making it the largest contributor to industrial emissions.Steel production is considered one of the hard-to-abate sectors,which are high emitting and may need to transform their strategy to meet goals of the Paris Agreement.In October 2023,Bank of China Luxembourg Branch priced a 3-year,EUR300m g

77、reen transition bond with the UoP earmarked for four projects related to the production or recycling of steel in Hebei Province,China.The projects are not eligible for Climate Bonds Certification under the recently published Steel Criteria,but still demonstrate a very high level of rigour and are al

78、igned with other market standards.The deal was in alignment with Climate Bonds Green Bond Database(GBDB)Methodology.The eligible projects are aligned with both the substantial contribution(SC)Criteria component of the technical screening criteria(TSC)required by the EU Taxonomy activity Manufacture

79、of iron and steel,and Manufacture of iron and steel in the Common Ground Taxonomy.5 It is also worth noting that the quantitative metrics and parameters required by both taxonomies are identical for steel production activity,namely the emission threshold set for different assets,and manufacturing st

80、eps such as iron casting and electric arc furnace(EAF).This bond highlights the ambition and some of the best practice to decarbonise production and recycling of steel in an emerging market economy,supported by transition finance.Best practice in green bond framework developmentmitigation.Other envi

81、ronmental objectives are not covered at this stage.The results of the work are intended to provide confidence and transparency to investors and other stakeholders in the sustainable investment space.The Common Ground Taxonomy Sustainable Debt Global State of the Market 2023 Climate Bonds Initiative

82、94.SustainabilitySustainability bond market highlights 2023In 2023,the sustainability theme constituted 12%of aligned GSS+deals.Aligned sustainability volume was USD107.8bn,a 31%drop compared to the USD156.7bn captured for 2022.Although the sustainability bond market has grown in the past decade,the

83、 development of regulatory standards has delayed issuance in some markets as issuers wait for clarity from regulatory guidance.The delayed release of the US Securities and Exchange Commissions climate disclosure rule created uncertainty for companies operating in the USA.6The sustainability theme wa

84、s backed by sovereign issuers such as Mexico,Peru,and Thailand whose sovereign sustainability bonds contributed 13%to aligned issuance(USD14.3bn).Historically the largest contributor to the sustainability segment,issuance from development banks,declined by 71%in 2023 to USD15.5bn.The presence of dev

85、elopment banks in the aligned sustainability space has gradually declined since its USD112.6bn peak in 2020.In 2023,109 entities issued debut sustainability bonds contributing USD39.2bn.In comparison,125 entities issued for the first time in 2022,with a collective volume of USD42.3bnSustainability b

86、onds support a just transition in LACLAC is the only region where sustainability bonds constitute the largest share of the aligned GSS+debt market,reaching 47%by the end of 2023.Additionally,LAC is the only region to consistently increase its sustainability bond volume in the past four years.The pro

87、minence of sustainability instruments in LAC reflects the regions unique socio-environmental landscape,characterised by approximately 60%of the worlds terrestrial biodiversity,and a myriad of marine and freshwater species.7 LAC faces profound social disparities,being the most unequal region globally

88、.8 Sustainability bonds can play a crucial role in addressing these intertwined challenges and catalysing a just transition,as a vehicle to finance environmental and social projects in one instrument.9Two LAC-based electric utilities mobilised sustainability bonds to finance initiatives that span re

89、newable energy,climate resilience,and expanding critical services like education and internet access,thereby integrating socio-economic advancements with environmental stewardship.These examples underscore how sustainability bonds,with their dual focus on environmental and social projects,can be ins

90、trumental in channelling investments towards a just transition in emerging economies.Eletrobras In September 2023,Eletrobras,Brazils leading electricity generation and transmission company,issued a BRL3bn(USD616m)5-year sustainability bond.The bonds proceeds are earmarked for projects that not only

91、bolster the companys commitment to decarbonisation,such as renewable energy generation,climate resilience,and ecosystem conservation,but also address crucial social needs.Key among these is extending renewable energy access to communities in the Amazon,traditionally dependent on diesel for power,the

92、reby addressing both environmental sustainability and energy equity.The entitys framework also references educational initiatives for communities adjacent to Eletrobras operations,reinforcing the social dimension of its sustainability agenda.This case exemplifies the versatility of sustainability bo

93、nds and their ability to address environmental betterment and social progress concomitantly.Comisin Federal de Electricidad(CFE)In 2023,Mexicos Comisin Federal de Electricidad(CFE),the state-owned electric utility,priced three MXN and three MXV deals with a combined volume of USD1.1bn.The UoP was ea

94、rmarked for renewable energy projects,energy efficiency enhancements,clean transportation,green building construction,and,notably,the expansion of telecommunications and internet access through its project Telecomunicaciones e Internet para Todos,which targets low-income populations.Leveraging CFEs

95、existing infrastructure,this endeavour aims to enhance economic and social development by fostering new business lines,increasing income,and extending essential services provision.This strategic move aims to cut greenhouse gas emissions and increase energy efficiency while bridging the digital divid

96、e,ensuring equitable access to information technology and broadband internet across Mexico.In its 2022 Sustainable Financing Framework,the issuer highlighted its ambition to support the low-carbon transition and expand access to essential services for the most vulnerable and underserved with its sus

97、tainable debt programme.10LACs growing influence in sustainable finance:highlights from 2023 The source of USD52bn aligned GSS+debt in 2023,6%of global volume.The source of USD28.1bn in sustainability bonds,26%of the global share.A 30%increase in sustainability deals from 2022 to 2023.SLB 17%Green 9

98、%Social 20%Sustainability was the preferred theme in LAC in 2023Sustain-ability 54%2023 aligned sustainability volumes surged in the LAC region204060USD Volume Issued(Billions)80Africa0Asia-PacificEuropeLACNorth AmericaSupranational202320219Source:Climate Bonds InitiativeSource:Climate Bo

99、nds InitiativeSustainable Debt Global State of the Market 2023 Climate Bonds Initiative 10Mexico is the largest country sourceAligned sustainability deals originated from 44 countries in 2023,including eight new ones,compared to 41 countries in 2022.Mexico made the largest contribution of USD11.9bn,

100、supported by its sovereign deals,surpassing last years leader SNAT.The contribution from SNAT issuers dropped by 85%YOY from USD47.9bn in 2022 to USD7.4bn in 2023.France made the second largest contribution(USD9.9bn)from 22 issuers,and USA(USD9.8bn)was third with aligned sustainability deals from 32

101、 issuers.Mexico takes the sustainability bond limelight in 2023 Mexico was the largest country source of sustainability bonds in 2023,amounting to USD11.9bn,made up of 20 deals.The Mexican Peso was the third most popular currency with 18 deals.There were eight Mexican issuers in 2023,and 50%of the v

102、olume originated from the Mexican Government at USD6bn.In 2022,the issuer made headlines for its UN Sustainable Development Goal-aligned bond priced in its local currency.11 2023 aligned sustainability bonds in numbersTOP 3 REGIONS1.Asia Pacific USD32.9bn2.LAC USD28.1bn3.Europe USD29.2bnTOP 3 COUNTR

103、IES1.Mexico USD11.9bn2.France USD9.9bn3.USA USD9.8bnLARGEST ISSUERBy volume:Mexico Government (United Mexican States),USD6bnBy deal count:New York City Housing Development Corporation,106 deals amounting to USD1.5bnDEAL CURRENCY 72%of volume in hard currency Deals issued in 25 currencies Top 3 curre

104、ncies by volume:USD,EUR,MXNGBP 5%PEN 4%Other 8%USD 32%EUR 25%MXN 7%JPY 7%USD preferred for 2023 aligned sustainability bondsTHB 4%BRL 3%MYR 3%CAD 2%Mexico leads aligned sustainability volume in 2023102030USD Billions40MexicoFranceSupranationalUSABrazilJapan500ThailandPeruSouth KoreaUK20222023Eight c

105、ountries emerged as new sources of sustainability deals in 2023CountryIssuerAmount USDCyprusSovereign1.1bnSharjah(UAE)Sovereign1.0bnEgyptSovereign478mJordanArab Bank250mBritish Virgin IslandsHaitian BVI International Investment Development Ltd210mMauritiusWLB Asset VI Pte Ltd88mFijiSovereign20mCape

106、VerdeInternational Investment Bank3mCzech RepublicRaiffeisenbank0.539m Source:Climate Bonds InitiativeSource:Climate Bonds InitiativeHard currencies take two-thirds of sustainability volume in 2023In 2023,hard currencies(USD,EUR,JPY,GBP,AUD,CAD and NZD)contributed 72%of the aligned issuance volume.T

107、he USD dominated with 32%,most of which originated from outside the USA.Sustainability bonds from EUR and MXN took the second and third spots,with USD26.6bn(25%)and USD7.5bn(7%)respectively.During 2023,aligned sustainability-bond issuers deployed 25 currencies,and for the first time the Cape Verdean

108、 Escudo(CVE)and Mexican unidad de inversin(MXV).The MXV is a currency value linked to the Mexican Peso(MXN)which has tracked inflation since its introduction in 1995 and was used by Mexicos Comisin Federal de Electridad(see below).Sustainability deals priced in local currencies help to mobilise dome

109、stic capital towards responsible investment strategies.Sustainable Debt Global State of the Market 2023 Climate Bonds Initiative 11External review volumes increase In 2023,80%of all aligned sustainability bonds received external reviews from SPO providers,in contrast to 69%in 2022.There were 502 ins

110、truments reviewed in 2023,1%more than the previous year(496 instruments in 2022).Of the 36 SPO providers that provided reviews for aligned sustainability instruments in 2023,12 reviewed a sustainability bond for the first time.Sustainalytics was 2023s top SPO provider in the sustainability space,rev

111、iewing 160 deals with combined volume of USD37.8bn.As one of the largest overall SPO providers of 2023,it is no surprise that Sustainalytics has consistently reviewed the highest number of sustainability-aligned deals and volume in the past five years(668 deals more than the runner up).Major second-

112、party opinion providers for sustainability instruments in 2023SPO NameInstruments by volume(USDbn)Instruments ReviewedSustainalytics37.8160Vigeo Eiris15.422ISS ESG11.623S&P5.568DNV GL5.411Issuers from 22 countries priced sustainability deals in USDCountry of originTotal USDbnContribution to totalCou

113、ntry of originTotal USDbnContribution to totalUSA9.8128.3%India1.002.9%Brazil3.259.4%UAE1.002.9%Mexico2.948.5%Ecuador0.742.1%Supranational2.757.9%Jordan0.250.7%Japan2.106.1%Colombia0.230.7%Cayman Islands2.005.8%British Virgin Islands0.210.6%South Korea1.905.5%Singapore0.120.3%Turkey1.745.0%Mauritius

114、0.090.3%France1.735.0%Taiwan0.080.2%China1.353.9%UK0.050.2%Philippines1.253.6%Fiji0.020.1%Total34.6 100.0%Sustainable Debt Global State of the Market 2023 Climate Bonds Initiative 125.SocialSocial bond market highlights 2023 In 2023,aligned social bonds contributed 18%to aligned GSS+volume.Volume hi

115、t USD153.3bn,a decline of 7%compared to the USD164.8bn recorded for 2022,and the third consecutive annual drop in volume since the 2020 peak.Social bonds originated from Saudi Arabia(SNB Funding Ltd.AUD20m/USD13.3m),Philippines(Bank of the Philippine Islands PHP20bn/USD372m),and Indonesia(Sarana Mul

116、tigriya Finansial Persero PT IDR700bn/USD43m)for the first time in 2023.The Korea Housing Finance Corp(KHFC)priced USD30.6bn,or 20%of the aligned social volume in 2023,beating CADES(USD23.9bn),the largest issuer in 2022.Korea Housing Finance Corporation KHFC significantly stepped up its social bond

117、volume in 2023,pricing 450%more than in 2022(USD5.6bn),channelled through 276 deals.Its Sustainable Financing Framework was introduced in 2023,extending the reach of its earlier Social Covered Bonds Framework(2018),and Social Financing Framework(2019)to include green project categories for Green Bui

118、ldings,Energy Efficiency,and Renewable Energy.Social project categories remain as Affordable Housing,which enables long-term borrowing to encourage widespread home ownership.12 Sustainalytics believes that KHFCs mortgage loan products will be used to improve housing welfare of vulnerable populations

119、 by providing low-interest,fixed rate loans to support housing in South Korea.13Social issuance takes off beyond EuropeIn 2023,the APAC region was the largest source of aligned social bonds contributing 43%(USD65.5bn).Since 2006,the largest cumulative volume has come from Europe at USD309.2bn,but As

120、ia Pacific has also demonstrated commitment to the theme with USD217bn originating from entities operating in 15 countries from China to Saudi Arabia.TOP 3 REGIONS1.Asia-Pacific USD65.5bn(43%)2.Europe USD54.7bn(36%)3.North America USD20.2bn(13%)TOP 3 COUNTRIES 1.South Korea USD55.9bn(36%)2.France US

121、D32.7bn(21%)3.USA USD20.2bn(13%)TOP 3 ISSUER TYPES1.Government-backed entity(USD91.3bn)2.Financial corporate(USD25.5bn)3.Local government(USD18.2bn)The 2023 aligned social bond market in numbersAligned social volume from South Korea has surgedUSD Billions309060Rest of Asia-PacificSouth Korea2016-201

122、920202021202320220Source:Climate Bonds InitiativeSouth Korea dominates aligned social volume in 2023,France leads 5-year volumeUSD Billions502002022202020191000SupranationalUSAChileFranceSouth KoreaNetherlandsChinaGermanyItalySpainJapanSource:Climate Bonds InitiativeTop ten aligned social

123、 bond issuers in 2023IssuerUSDbnKorea Housing Finance Corp30.6CADES23.9Industrial Bank of Korea5.9BNG Bank NV5.1Korea Asset Management Corp5.0Korea SMEs and Startups Agency3.4Chile 3.4The Hong Kong Mortgage Corp Ltd2.5Colombia2.5Council of Europe Development Bank2.4Sustainable Debt Global State of t

124、he Market 2023 Climate Bonds Initiative 13South Korea has implemented strong government policy to support social welfare benefits,which is reflected in the countrys position as the largest source of cumulative social volume in Asia-Pacific.In 2023,it was responsible for 85%of Asia-Pacifics aligned s

125、ocial volume through 474 deals;58%of which were supplied by KHFC.Social bonds offer huge untapped potential to support social advancement in EM.Sovereigns and government agencies can deploy the social bond market to support ambitions of increased social equality and inclusion.14USD and KRW tie as pr

126、eferred currencies for socialIn 2023,2900 aligned social deals were priced in USD,followed by KRW with 453 deals.However,the two currencies tied for the amount issued with both reaching USD47bn.The Korea Student Aid Foundation was the first to price aligned social bonds in KRW in 2019 through four d

127、eals with combined volume of KRW200bn(USD120m).Since then,social issuance in KRW has progressively grown with four entities pricing social deals in KRW for the first time in 2023.Climate Bonds expects that the supportive policy environment together with the expansion of South Koreas battery and semi

128、conductor market will continue the need for significant sustainable debt financing in the future,which could see KRW as a front runner ahead of other Asian currencies.15 Sovereign issuers return to the social market in 2023 Sovereigns returned to the social bond market in 2023,having been absent in

129、2022.Chile priced five aligned deals,and Colombia priced two,collectively worth USD5.9bn.In 2023,government-backed entities priced the largest volume of aligned social bonds(USD91bn),USD8.4bn less than the previous year,but 3.6 times the volume priced by financial corporates,the second largest issue

130、r type(USD25.5bn).Local governments issued the largest number of deals at 2562,a 21%increase from the prior year.Local government and not-for-profit issuers were the only issuer types to increase their deal counts in 2023 compared to the previous year,and local governments were the only issuer type

131、to increase the volume issued in 2023.External Review In 2023,1724 socially-aligned deals were externally reviewed,11%lower than the year before(1942).Even so,88%of all aligned deals received an SPO,the same percentage as the year prior.15 SPO providers reviewed social bonds for the first time in 20

132、23.Among them,Kestrel reviewed 676 aligned social instruments from 12 issuers.However,its deals only constituted 3%(USD4bn)of the total aligned social bond issuance volume.Kestrel is a US-approved verifier that provides opinions in alignment with the Green and Social Bond Principles,Climate Bonds TO

133、P 5 CURRENCIES FOR ALIGNED SOCIAL BONDS 20231.KRW USD47.12bn2.USD USD47.06bn3.EUR USD40.8bn4.CLP USD3.4bn5.JPY USD2.9bnKRW SOCIAL VOLUME HISTORY2023:USD47.12bn2022:USD20.6bn2021:USD9.6bn2020:USD1.6bn2019:USD0.2bnTOP 5 SPO PROVIDERS OF 2023 BY COUNT:1.Kestrel 6762.Sustainalytics 4163.Korea Ratings 26

134、84.S&P 1715.KIS Rating 52TOP 5 SPO PROVIDERS OF 2023 BY VOLUME:1.Vigeo Eiris USD29.4bn2.Sustainalytics USD26.3bn3.Korea Rating USD25.bn4.ISS ESG USD13.3bn5.KIS Rating USD9.1bnFour issuers priced social bonds in KRW for the first time in 2023Issuer nameAmount issued KRW Amount issued USDNumber of dea

135、lsUse of ProceedsAnsan Urban Corp 135bn107m3Affordable InfrastructureIGIS Residence REIT Co Ltd10bn7.6m1Microfinance,Affordable Infrastructure,EqualityKiup Kiwoom e Securitization Speciality Co Ltd.30bn22.7m1Healthcare,Employment,Education,Microfinance,Affordable Infrastructure,Equality,Social Adapt

136、ation&ResilienceWoori Financial Group Inc.200bn149m1Healthcare,Employment,Education,Affordable Infrastructure,EqualityLocal government issuers continue to dominate the social bond market in 2023Standard and Criteria,and the Sustainability Bond Guidelines.16 In 2023,the 12 issuers that obtained an SP

137、O from Kestrel were local governments focused on housing finance or social infrastructure development.Not-for-Profit2022202360%72%22%32%6%4%Government-Backed EntityDevelopment Bank Not-for-Profit1%1%1%1%Sovereign 1%North America 1%In 2023,LAC issuers led on blue and water labels0.51.01.52.5USD Billi

138、ons2.00AfricaEuropeN AmericaAsia-PacificLACSource:Climate Bonds InitiativeSource:Climate Bonds InitiativeSource:Climate Bonds InitiativeSource:Climate Bonds InitiativeNon-Financial Corporate Financial CorporateSovereignGovernment-Backed EntityDevelopment BankLocal GovernmentSustainable Debt Global S

139、tate of the Market 2023 Climate Bonds Initiative 243.Cia De Saseamento do Paran(Sanepar),the Paran state-owned water and sewage company,priced a BRL1bn(USD200m)blue bond in July 2023.The UoP of the 3-year deal is earmarked to support Water,and Affordable Infrastructure.4.Rio+Saneamento issued a BRL2

140、.5bn(USD514m)dual-tranche blue deal with UoP earmarked for Water and Sustainable Infrastructure.The four above-mentioned entities provide services to municipalities in states located in the southern part of Brazil,where access to W&S is more advanced compared to the northern regions.This highlights

141、the difficulty of attracting blue finance to where it is most needed.Furthermore,guas do Rio and Rio+Saneamento are private corporations from Rio de Janeiro,a state that has privatised its state-owned water company through concession agreements.Sanepar and Sanasa are mixed corporates,majority-owned

142、by municipal and state governments.This suggests that blue finance is a flexible solution to funding for a variety of strategies designed to achieve W&S goals.The rising blue tide in AsiaThe Asia-Pacific region is highly vulnerable to sea level rise,relies heavily on the blue economy,and plays a cri

143、tical role in global marine biodiversity and trade.40 The volume of aligned blue labelled GSS+bonds originating from the region has reached approximately USD6bn with China leading.In 2023,Export-Import Bank of Korea(Eximbank)priced a USD1bn blue bond,the first from South Korea.Eximbank is Koreas off

144、icial export credit agency,responsible for financing export-import transactions,overseas investments,and natural-resource development.Eximbanks Sustainable Financing Framework included marine renewables,and sustainable water and wastewater management;the scope of which was extended to sustainable ma

145、rine transportation and to prepare for the blue bond.41 China is the lead source of aligned blue bonds in the Asia-Pacific region1.02.03.0USD Billions4.00Brazil leads LAC on aligned blue and water bonds0.51.01.5USD Billions2.00Source:Climate Bonds InitiativeSource:Climate Bonds InitiativeFijiBarbado

146、sChinaIndonesiaBelizeJapanBrazilSuprana-tionalSuprana-tionalSouth KoreaEcuadorPhilippinesColombiaNon-Financial Corporate Non-Financial Corporate Financial CorporateFinancial CorporateSovereignSovereignGovernment-Backed EntityGovernment-Backed EntityDevelopment BankDevelopment BankLocal GovernmentLoc

147、al GovernmentSustainable Debt Global State of the Market 2023 Climate Bonds Initiative 2510.Policy spotlightAgainst the backdrop of a rapidly developing GSS+debt market,policymakers globally must accelerate the scale of sustainable investment and harness it to meet their sustainable development need

148、s.Climate Bonds highlights three policy initiatives that can leverage the debt market to finance the transition 1.Plan for the transition Strengthen transition planning to strengthen GSS+issuanceIssuers of either UoP bonds or SLBs,should consider their transition,and the planning of it,coherently at

149、 the entity-level.This would facilitate a strategic approach to their financing needs as well as financing tools at their disposal to achieve their objectives.This will matter even more for transition financing,which is likely to attract more detailed scrutiny of what is financed and how it aligns w

150、ith a credible transition pathway.From a market perspective,linking labelled bonds to a credible transition plan can provide additional confidence in the issuance,for sovereigns and private issuers alike.This is particularly valuable for SLBs and could address the lack of ambition seen in the majori

151、ty of SLB deals.43Japans 2023 GX transformation plan demonstrates how sovereigns can articulate their transition plans coherently to then inform their transition bond framework,thereby strengthening the credibility of their issuance.The Japans first GX bond,priced in early 2024,captures the opportun

152、ities of a global transition.It references the GX transformation plan,which details how USD130bn of public investment will leverage USD1tn of private investment to meet net zero by 2050.In addition,the plans just transition measures focus on re-skilling and up-skilling the labour force to work in gr

153、een growth areas.Drive ambitious corporate transition planning,particularly n hard-to-abate sectors The push for better transition planning is well underway.2023 saw policymakers attention turn to the issue.The Monetary Authority of Singapore set out supervisory expectations on transition planning f

154、or financial institutions.44 The UK announced it will consult on expanding its transition plan disclosure requirements,and on mandatory transition planning.45 When the Hong Kong Monetary Authority(HKMA)released its principles on planning for the transition to a net-zero economy,requiring banks to es

155、tablish Paris-aligned targets,it also called for increased transparency over transition planning,suggesting their future inclusion in disclosure requirements.46Disclosure requirements are one part of the puzzle.Policymakers should also provide guidance and capacity on what is a credible transition p

156、lan,particularly for hard-to-abate sectors which will require transformative planning.47 In certain jurisdictions,mandating transition plan implementation and CAPEX planning will accelerate change,however this will depend on the capabilities of the private sector,interaction with existing regulation

157、,and wider policy support for transition.In key hard-to-abate sectors,CAPEX planning is key to avoid embedding future emissions.In China,for example,78%of existing coal-based blast furnaces capacity need reinvestment by 2030.48 At the same time,39%of new coal-based blast furnaces being developed glo

158、bally are in China and this corresponds to a capacity of around 147 Mt per year.From a risk perspective,this is estimated to be a stranded asset risk of USD147-222bn.49 Transition policies will require granular guidance per sector,providing clarity on availability and eligibility of any subsidies fo

159、r example,accelerated depreciation,and other supportive policies.Incorporate just transition in all policiesThe fundamental economic shifts that are needed to achieve the objectives of the Paris Agreements require political and social buy-in to be designed and implemented.2023 saw social unrest in r

160、esponse to transition policies across the world,from the farmer protests in the EU to protests over copper mining licensing in Panama.Such unrest raises key questions over the redistributive and social impacts of transition policies.Ultimately,failing to address the significant political economy cha

161、llenges of the transition,especially in hard-to-abate sectors such as agriculture or critical minerals,threatens the likelihood of success of policy design and implementation and therefore speed of transition.Including just transition measures in transition planning ensures that existing inequalitie

162、s are not exacerbated,enables equal access to transition policy design and opportunities,and ensures the social buy-in that is a necessary condition for an early and orderly transition.Just transition measures are relevant for all issuing entities.At COP28,Climate Bonds,together with the LSE Grantha

163、m Institute,released Mobilising global debt markets for a just transition,demonstrating the vast potential of the GSS+bond market to finance a just transition.Despite the lack of necessary market infrastructure to support the financing of just transition at scale(such as agreed upon definitions and

164、best practices),Climate Bonds research shows that 13%of cumulative aligned GSS+volume had just transition characteristics.50 Green trade policies to trigger decarbonisation Carbon Border Adjustment Mechanisms can have an outsize impact on global decarbonisation The EUs Carbon Border Adjustment Mecha

165、nism(CBAM)came into force on 1st October 2023 in its reporting-based transitional phase and is a significant step towards improving European carbon pricing policy,allowing for the phase-out of Emissions Trading System free allowances.51 By placing a levy on certain carbon-intensive goods(such as ste

166、el and cement),and hence equalising the price of carbon paid for EU products and the one for imported goods,the CBAM aspires to build a green level playing field.Financial adjustments will be gradually phased in from 2026,and fully in 2034.The CBAM can be a key lever to trigger decarbonisation well

167、beyond the EUs borders.Indeed,should EU importers demonstrate that they have already paid a carbon price to produce those goods in a non-EU country,this amount would be deducted,providing an incentive to decarbonise outside the EU and for their nations to implement a carbon tax.This presents opportu

168、nities for transition and green-first growth in many trade partners economies,by anchoring demand for low-carbon products and hence reducing uncertainty for investment.In addition,the revenues generated by the CBAM could be utilised to accelerate the net-zero transition as well as to support most im

169、pacted EM countries and further encourage global decarbonisation.As jurisdictions look to prevent carbon leakage and trade disadvantage as they implement or increase carbon prices,CBAMs are expected to be implemented in more jurisdictions in the coming years:the UK is expected to implement a CBAM by

170、 2027 and other countries like Canada are considering similar schemes.In implementing CBAMs,countries should consider how their policy design can best create green growth opportunities for trading partners,especially in emerging market developing economies and lower middle income countries and how t

171、he use of revenues generated can best be used to support this.Sustainable Debt Global State of the Market 2023 Climate Bonds Initiative 26Green export credit guarantees could accelerate global transitionGreening trade facilitation,especially export credit guarantees,is an important lever to further

172、encourage decarbonisation.Between 20062022 Export Credit Agencies(ECAs)have provided more financing to the energy sector than the multilateral financial institutions,with an average of USD40bn provided per year.This financing has been predominantly allocated to fossil fuels projects.In addition,with

173、 their status as lenders of last resort,ECAs hold potential to shift huge levels of finance towards green projects.52Some countries are leading the way,and change is afoot.In July 2023,Germany announced it is tilting its export credit guarantees to provide better coverage to green projects,i.e.,thos

174、e that meet the EU Taxonomy thresholds,while preventing support for nearly all new fossil fuel projects.53 The German ECA provided over EUR100bn in support for German exporters in 2022,more than any other agency globally.54 COP28 saw the launch of the Net-Zero Export Credit Agencies Alliance,with Ca

175、nadian,Danish,Swedish,and UK ECAs committing to 1.5C-alignment,and to phase out new support for unabated fossil fuel projects by the end of 2024.55 Most ECAs,especially large ones,are in G20 countries with credible climate objectives.Greening ECA financing will support green domestic industries,crea

176、ting a win-win between trade policy and climate policies.3.Increase access to capital for green investmentsLeverage central banks to encourage green lending Climate change presents risk to financial stability,and hence climate-related financial risk is a key concern to central banks.Central banks ca

177、nnot be the driver of climate policy but depending on a central banks specific mandate and macro-economic circumstances,they have a key role to play in supporting the transition.Currently,at about USD30bn/year globally,green lending growth significantly lags green debt markets growth.Shifting lendin

178、g to green will both accelerate real economy transition and insulate banks from significant losses linked to climate-related financial risks.Central banks can establish discounted lending facilities for green projects and assets that banks can pass on to their customers as green loans and mortgages.

179、Such green financing facilities have been successfully established by the Bank of Japan and Peoples Bank of China,for example.56,57 Other examples of encouraging green lending include the Reserve bank of India and the Bangladesh Bank that have introduced green credit guidance.58 Where relevant and a

180、ppropriate within existing capital adequacy frameworks,central banks can also tilt capital requirements,as done by Hungarys central bank for green mortgages,based on lower default risk for such mortgages.59 In terms of green central banks own portfolios,in February 2023,the ECB announced stronger me

181、asures to decarbonise its corporate bond holdings.As it reduces the size of its asset purchase programme portfolio,reinvestment will be tilted towards issuers with stronger climate performance.60Multilateral development banks can and should do moreThe multilateral development bank(MDB)Joint Principl

182、es for Assessing Paris Alignment demonstrate the importance of a harmonised approach to transition.The World Bank and nine other MDBs have developed common principles to facilitate the Paris Alignment assessments of their new financing operations.61 These provide transparency and clarity to project

183、developers on how to qualify for green financing.They can also inform DFI and NDB assessments,accelerating their roll out of green financing.Indeed,DFIs such as COFIDES and IFU have already picked up the principles.In addition to greening their balance sheets,MDBs and DFIs need to increase efforts t

184、o crowd in private finance for green.Public finance alone cannot bridge the USD6tn climate investment gap.Climate Bonds analysis finds that only around 30%of European DFIs have any form of capital mobilisation target in place.Prioritising private capital mobilisation and implementing replicable mech

185、anisms such as standardised blended finance facilities could rapidly increase the flow of capital to green projects.Sustainable Debt Global State of the Market 2023 Climate Bonds Initiative 2711.OutlookAligned GSS+volume had reached USD4.4tn by the end of 2023 and Climate Bonds expects the market to

186、 break through the USD5tn mark by mid-2024.There is still enormous untapped potential for this market,with aligned 2023 figures representing 4%of a growing global debt market,and supply and demand imbalances persisting in the primary markets.The gap between the USD5.5tn issued to date,and the USD4.4

187、tn meeting the requirements of Climate Bonds Database Methodologies suggests there is an opportunity for issuers to be more ambitious and embrace greater rigour in their planning and disclosure.The green bond market continues to thrive with labels such as blue and transition gaining momentum and add

188、ing to the diversity of the investible opportunity set.The leadership being shown by sovereign issuers through new and repeat issuance is guiding the growth of GSS+markets around the globe raising the profile of decarbonisation plans and encouraging crowding in from the private sector.Around half of

189、 all debt issuing nations have now mobilised the GSS+market which suggests that governments are prioritising expenditures with green and social purpose.Social and sustainability labels have been used to support inclusive,sustainable growth,contributing to a just transition,and the success of these l

190、abels in EM has shown the influence that policy support can have on market growth.SLBs are the smallest segment of the GSS+market and show potential for scale as more issuers begin to reference credible transition plans in their selection of KPIs and SPTs,and uplift the quality of the market.The foc

191、us is now on robust transition planning.Climate Bonds expects the following themes to propel the GSS+market in 2024:1.The transition label fosters inclusivity.Climate Bonds expects to see rapid growth of bonds bearing the transition label from Asia and the USA,as greater clarity emerges around eligi

192、ble UoP from standard setters,national taxonomies,and inspired by the success of the Japanese sovereign deal.Climate Bonds assesses bonds bearing the transition label for inclusion in its green or sustainability databases according to the eligible project categories.2.Governments must lead on transi

193、tion planning.Clear transition plans help to prioritise green development,and national sectoral decarbonisation pathways bring transparency to climate transition spending.At the government level,this will provide a roadmap for each government to access the finance needed to meet its NDCs,with a focu

194、s on exploiting the opportunities posed by the global green revolution.3.Sustainability-linked bonds can be scaled.The 2023 growth in aligned SLBs points to potential to scale this market.Issuers including those operating in hard-to-abate sectors such as steel and cement,can leverage the opportunity

195、 to connect their liabilities to their sustainability objectives,beginning with a robust transition plan.This transition plan should be used as a reference to select material KPIs and SPTs to lend credibility to SLBs.Climate Bonds and others offer guidance to support issuers in the development of cr

196、edible transition plans.4.Oil and gas companies light up the market.Transition encompasses a broader range of GHGs beyond CO2.The IPCC has shown that addressing methane leakage is an urgent and immediate challenge to meeting greenhouse gas emission reduction requirements.Work is underway to define g

197、as sector methane abatement investments that are consistent with net-zero pathways to support 1.5C targets.Subject to investor confidence in the 1.5C credentials of this work,this has the potential to open a new area of thematic issuance among national oil and gas companies.5.Resilience integrated i

198、nto transition.Incorporating resilience into transition planning involves integrating climate considerations into development planning processes and prioritising actions that build societal resilience over time.Climate Bonds expects to publish a resilience taxonomy in 2024 which will enable a conver

199、gence between the social and green themes,as green issuers find many social expenditures become eligible for their larger green programmes This will support further growth in the sovereign GSS+market.CH4Sustainable Debt Global State of the Market 2023 Climate Bonds Initiative 28Appendix Scope of ana

200、lysis This report includes four sustainable debt themes based on the projects,activities,and expenditures financed:green,social,sustainability,and SLB.The GSS+themes can be described as follows:Green:dedicated environmental benefits(captured since 2012).Social:dedicated social benefits (captured sin

201、ce 2020).Sustainability:green and social benefits combined into one instrument (captured since 2020).SLB:changes in coupon(almost always step-ups)linked the fulfilment of key performance indicators(KPIs)against entity level sustainability performance targets(SPTs)(captured since 2021).Transition bon

202、dsHistorically,Climate Bonds recorded but did not screen bonds bearing the transition label.As of January 2024,Climate Bonds stopped reporting transition bonds as a separate category but regards them as a sub-set of the green label.Climate Bonds now adds such bonds to the Climate Bonds Green Bond Da

203、tabase,and screens them against its Green Bond Dataset Methodology.63Methodology overview This report draws on three Climate Bonds databases:1.Green Bond Database(GBDB)2.Social and Sustainability Bond Database(SSBDB)3.SLB Database(SLBDB)Bonds meeting the requirements outlined in Climate Bonds screen

204、ing methodology qualify for inclusion in the datasbases and are classified as aligned.Labelled bonds for which there is not enough information to determine eligibility for database inclusion are classified as pending until sufficient disclosure is available to decide.Bonds failing to meet the requir

205、ements of Climate Bonds screening methodology are classified as non-aligned and are excluded from the databases.Green,social,and sustainability bonds captured by Climate Bonds meeting the requirements outlined in its screening methodology qualify for inclusion in the databases and are classified as

206、aligned.Labelled bonds for which there is not enough information to determine eligibility for database inclusion are classified as pending until sufficient disclosure is available to decide.Bonds failing to meet the requirements of Climate Bonds screening methodology are classified as non-aligned an

207、d are excluded from the databases.Green,social,and sustainability bondsAlignedPendingExcludedCumulative USD billion as of 31 December 20234.4tn79.8bn751.7bnSLBsFully alignedStrongly alignedAligningNot alignedCumulative USD billion as of 31 December 202340.3bn2.2bn4.7bn278.9bnSLBs are assessed accord

208、ing to Climate Bonds Sustainability-Linked Bond Database Methodology(SLBDB Methodology)and classified according to four levels of alignment.62 1.Fully aligned:SLB targets cover all material sources of emissions and are aligned with the relevant pathway.2.Strongly aligned:SLB targets cover all materi

209、al sources of emissions and will be aligned with the relevant pathway by 2030.3.Aligning:SLB targets cover all material sources of emissions,are aligned with the pathway on a%reduction basis,and the issuer has the basic tenets of a transition plan.4.Not aligned:SLB targets fail to meet any of the ab

210、ove criteria,or do not meet the other requirements detailed in the SLBDB Methodology.As Criteria are developed,Climate Bonds will update its GBDB methodology and then begin screening bonds from issuers in those sectors for inclusion,whether labelled as transition or as green.The Climate Bonds Taxono

211、my defines the assets and activities that are aligned with a 1.5-degree pathway,accepting financing with either label.In 2024,Climate Bonds will publish new sector Criteria for Electrical Utilities,Agri-food,Deforestation and Conversion-Free Sourcing,Hydrogen Delivery and Production,and Basic Chemic

212、als.Climate Bonds Buildings Criteria will also be updated to reflect the differences between new and existing buildings.Sustainable Debt Global State of the Market 2023 Climate Bonds Initiative 29SectorKeywords/TermsGeneral A&R termsAdaptationResilienceAnRA&RAdaptiveResilientClimate riskExposureHard

213、eningHazardClimate proofingVulnerabilityRedundancyRedundantTCFDSocial resilience and well-beingSocial protectionWelfareLivelihoodsDisease surveillance systemsE-HealthRapid diagnostic testsDisaster risk management and insuranceEarly warning systemWeather monitoringWeather forecastFlood forecastingDro

214、ught monitoringClimate monitoringClimate modelling RelocationManaged retreatClimate Information SystemParametric insuranceIndex insuranceCatastrophe insuranceWaterDrinking waterStormwater drainageWater treatmentWater loss reductionWater conservationHydro-meteorological monitoringRainwater harvesting

215、Wastewater treatmentDesalinationFlood controlIrrigation efficiencyLeakage managementWater efficiencyWetland degradationSectorKeywords/TermsEnergyDistributed GenerationDistributed PVMicrogridsMinigridsEnergy StorageUnderground cablingStructural StrengtheningAgriculture,forestry,land use,and natural r

216、esource managementSoil conservationClimate-smart agricultureAgricultural insuranceClimate-resilient rural infrastructureDrought resistant cropsNon-perennial cropsRegenerative agricultureSoil sequestrationWild brush clearingSpecies diversificationAfforestation ReforestationMangrove conservation and r

217、eplanting Restoration of natural habitatsPest control measuresRegeneration or extension of natural forestsSustainable aquacultureEcosystem-based adaptationIntegrated water resources managementEcosystem ServicesSoil ErosionBiodiversityEvapotranspirationLand degradation SectorKeywords/TermsInfrastruct

218、ure and built environmentGreen roofs and wallsWater retention gardensPorous pavementsReduce urban heat zonesGrid resilienceBack-up generation and storageIncreased cooling requirementUrban flood protectionClimate-resilient urban infrastructureResilient sheltersNatural infrastructureGreen infrastructu

219、reNatural assetsWildlife buffer zoneCoastsCoastal natural buffer zonesFlood warning systemsCoastalSetbacksManaged realignmentFlood shelterCyclone shelterSlope managementCoastal protectionWetland protectionMarine protected areaArtificial reefIndustrySupply chain resilienceBusiness continuity planning

220、Climate-related physical risk assessmentClimate-related transition risk assessmentAdaptation and Resilience List of acronyms A&R:Adaptation and resilience ABS:Asset-backed securities AFFLU:Agriculture,forestry,food,and land use CBS:Climate Bonds StandardCBS v4:Climate Bonds Standard V4 DM:Developed

221、market EM:Emerging market ESG:Environmental,social,and governance EU:European Union GBDB:Green Bond Database GBP:ICMAs Green Bond Principles GHG:Greenhouse gas GSS:Green,social and sustainability GSS+:GSS and SLB bondsKPI:Key performance indicator LAC:Latin America and Caribbean MDB:Multilateral dev

222、elopment bank S&S:Social and sustainability SME:Small and medium-sized enterprise SSBDB:Social and Sustainability Bond Database SBP:ICMAs Social Bond Principles SDG:Sustainable development goal SLB:Sustainability-linked bond SLL:Sustainability-linked loan SNAT:Supranational SPT:Sustainability perfor

223、mance target UoP:Use of proceeds YOY:Year-on-yearSustainable Debt Global State of the Market 2023 Climate Bonds Initiative 30Endnotes1.Chinas property downturn.2.“Green Bonds Made by KfW”Framework 2024.KfW.Retrieved from https:/www.kfw.de/PDF/Investor-Relations/PDF-Dokumente-Green-Bonds/20231206-KfW

224、-Green-Bond-Framework.pdf.3.Environmental Finance.KfW adds biodiversity as it launches 13bn green bond programme for 2024.Retrieved from https:/www.environmental- Opinion:Green Bonds Made by KfW Framework.Morningstar Sustainalytics.Retrieved from https:/www.kfw.de/PDF/Investor-Relations/PDF-Dokument

225、e-Green-Bonds/SPO-Sustainalytics-Framework-2024.pdf.5.Description on Bank of China Limited,Luxembourg Branchs Transition Bond.Bank of China.Retrieved from https:/ 7.UNEP-WCMC.(2016).The State of Biodiversity in Latin America and the Caribbean:A mid-term review of progress towards the Aichi Biodivers

226、ity Targets.United Nations Environment Programme(UNEP).https:/www.cbd.int/gbo/gbo4/outlook-grulac-en.pdf8.Inter-American Development Bank.(2024).The complexities of inequality in Latin America and the Caribbean.Accessed in March 2024 9.Robins N,Curran B,Plyska O,Burge L and Van Coppenolle M.(2023).M

227、obilising global debt markets for a just transition.London:Grantham Research Institute on Climate Change and the Environment,London School of Economics and Political Science.Accessed in March 2024 https:/www.lse.ac.uk/granthaminstitute/publication/mobilising-global-debt-markets-for-a-just-transition

228、/10.Comisin Federal de Electricidad Sustainable Financing Framwork,January 2022,CFE_ Sustainable Financing Framework.pdf11.https:/www.environmental- 12.Concept|ESG|Investor Center|(hf.go.kr)13.khfc-social-bond-spo-09072018-final.pdf(mstar-sustops-cdn-mainwebsite-)14.https:/ Party Opinions-Kestrel()1

229、7.Climate Bonds Initiative,March 2024,Sustainability-Linked Bonds:Building a High-Quality Market.https:/ emission scope coverage is even slightly higher in reality due to the funnel approach described.19.Compared to other reasons,lacking GHG targets is less a fault of issuers than a current limitati

230、on of the SLBDB Methodology,which currently only screens bonds from the perspective of climate mitigation.On the other hand,climate impacts are material for virtually all companies,so while Climate Bonds may not advocate that every SLB should have climate mitigation KPIs/targets,all issuers should h

231、ave at least one outstanding SLB containing this.20.EM includes frontier markets.21.Total number of issuers is lower than adding individual issuer counts as some repeat issuers have SLBs with different alignment levels.22.Development Bank of Rwanda,September 2023,Investor Presentation.https:/www.brd

232、.rw/wp-content/uploads/2023/09/SLB-Investor-Presentation.pdf 23.According to Bloomberg,sovereign debt with country of risk=Chile was USD101.3bn at the end of 202324.Egypt Sovereign Sustainable Financing Framework,November 2022.Egypt Sovereign Sustainable Financing Framework_vF(mof.gov.eg)25.SECOND P

233、ARTY OPINION Sustainability Quality of the Issuer and the Green German Federal Securities(Grne Bundeswertpapiere)(deutsche-finanzagentur.de)26.SECOND PARTY OPINION Sustainability Quality of the Issuer and the Green German Federal Securities(Grne Bundeswertpapiere)(deutsche-finanzagentur.de)27.Green

234、bond allocation report 2022(bundesfinanzministerium.de)28.SECOND PARTY OPINION Sustainability Quality of the Issuer and the Green German Federal Securities(Grne Bundeswertpapiere)(bundesfinanzministerium.de)29.United Kingdom,Green Bond Framework:https:/assets.publishing.service.gov.uk/government/upl

235、oads/system/uploads/attachment_data/file/1002578/20210630_UK_Government_Green_Financing_Framework.pdf 30.Chile sustainability linked bond framework:https:/www.hacienda.cl/english/work-areas/international-finance/public-debt-office/esg-bonds/sustainability-linked-bonds/second-party-opinion-sustainaly

236、tics-2023-31.Mexico second party oninion:https:/assets.website- 32.Definition based on 1)International Finance Corporation.(2022).Guidelines for Blue Finance.International Finance Corporation.https:/www.ifc.org/en/insights-reports/2022/guidelines-for-blue-finance&2)Asian Development Bank.(2023).Bond

237、s to Finance the Sustainable Blue Economy:A Practitioners Guide.Asian Development Bank(ADB),International Capital Market Association(ICMA),International Finance Corporation(IFC),United Nations Global Compact(UN Global Compact),United Nations Environment Programme Finance Initiative(UNEP FI).https:/d

238、oi.org/10.22617/TCS230328-2 33.Institute for Sustainable Investing,Morgan Stanley.(2023,April).4 Ways to Invest in a Sustainable Blue Economy.https:/ 34.ICMA.(2021).Green Bond PrinciplesVoluntary Process Guidelines for Issuing Green Bonds;ICMA.(2023).Social Bond PrinciplesVoluntary Process Guideline

239、s for Issuing Social Bonds;ICMA.(2021).Sustainability Bond Guidelines;ICMA.(2023).Sustainability-Linked Bond PrinciplesVoluntary Process Guidelines.35.NWB Bank Investor Relations website:https:/ in February 2024)36.World Bank press release:https:/www.worldbank.org/en/news/press-release/2018/10/29/se

240、ychelles-launches-worlds-first-sovereign-blue-bond(accessed in February 2024)37.Instituto Trata Brasil.(2023).Avanos do Novo Marco Legal do Saneamento Bsico no Brasil 2023(SNIS 2021).Instituto Trata Brasil,Associao Brasileira dos Fabricantes de Materiais para Saneamento(ASFAMAS),GO Associados.https:

241、/tratabrasil.org.br/avancos-do-novo-marco-legal-do-saneamento-basico-no-brasil-2023-snis-2021/38.https:/www.ifc.org/en/insights-reports/2022/guidelines-for-blue-finance39.https:/pressroom.ifc.org/all/pages/PressDetail.aspx?ID=27681 40.Tameo Impact Fund Solutions,Sasakawa Peace Foundation.(2023).Fina

242、ncing the Blue Economy in Asia.https:/www.adb.org/sites/default/files/publication/806136/financing-blue-economy.pdf 41.Korea Export-Import Bank website:https:/www.koreaexim.go.kr/he/HPHEOM009M01(accessed in February 2024).42.List of keywords used:aquaculture,aquatic,boat,blue,coastal,fisheries,marin

243、e,ocean,offshore,port,ports,sewage,shipping,ship,wastewater,water.43.https:/ Steel Transformation Tracker(agora-industry.org)49.Pedal to the Metal 2023(globalenergymonitor.org)50.https:/www.lse.ac.uk/granthaminstitute/publication/mobilising-global-debt-markets-for-a-just-transition/51.Carbon Border

244、Adjustment Mechanism-European Commission(europa.eu)52.https:/ sustainable finance policies for 1.5C,Climate Bonds Initiative59.Burge,L.,2023.101 sustainable finance policies for 1.5C,Climate Bonds Initiative60.https:/www.ecb.europa.eu/press/pr/date/2023/html/ecb.pr2302021a4ecbe398.en.html 61.https:/

245、www.worldbank.org/en/publication/paris-alignment/joint-mdb-paris-alignment-approach62.Climate Bonds SLB Database Methodology,Sustainability-Linked Bond Database Methodology|Climate Bonds Initiative63.Climate Bonds Initiative Green Bond Database Methodology,Green Bond Database Methodology|Climate Bon

246、ds InitiativeLead Authors:Neeraj Chouhan,Caroline Harrison,Deepak Sharma Contributors:Miguel Almeida,Mike Brown,Lily Burge,Daniel Costa,Ang GaoEditorial support:Stephanie EdghillDesign:Godfrey Design,Joel Milstead,Disclaimer:The information contained in this communication does not constitute investm

247、ent advice in any form and the Climate Bonds Initiative is not an investment adviser.Any reference to a financial organisation or debt instrument or investment product is for information purposes only.Links to external websites are for information purposes only.The Climate Bonds Initiative accepts n

248、o responsibility for content on external websites.The Climate Bonds Initiative is not endorsing,recommending or advising on the financial merits or otherwise of any debt instrument or investment product and no information within this communication should be taken as such,nor should any information i

249、n this communication be relied upon in making any investment decision.Certification under the Climate Bond Standard only reflects the climate attributes of the use of proceeds of a designated debt instrument.It does not reflect the credit worthiness of the designated debt instrument,nor its complian

250、ce with national or international laws.A decision to invest in anything is solely yours.The Climate Bonds Initiative accepts no liability of any kind,for any investment an individual or organisation makes,nor for any investment made by third parties on behalf of an individual or organisation,based in whole or in part on any information contained within this,or any other Climate Bonds Initiative public communication.Published by Climate Bonds Initiative,May 2024