Activating Alignment: Applying the G-20 Principles for Sustainable Finance Alignment with a Focus on Climate Change Mitigation

Year Published

2023

Contributing Organizations

Sustainable Banking and Finance Network (SBFN)

International Monetary Fund (IMF)

World Bank Group (WBG)

OECD

Type of Resource

Research/Insights Report

Languages

English

Relevant Topics

Core Topic

Climate Policies & Frameworks

Target Audience

MDBs/DFIs

Governments & Policymakers

Relevant Geography

Global

North America

Resource Description

This resource reviews green, social, sustainable, and sustainability-linked (GSSS) bond issuance in emerging markets and developing economies (EMDEs) from 2015–2021, assessing growth, issuer types, use-of-proceeds, and key challenges.

Why This Matters

Sustainable bonds are essential to finance climate and development priorities in EMDEs, yet issuance lags behind potential. Creating supportive frameworks and strengthening local capacity can help unlock private capital and attract global investors.

Key Insights

EMDEs issued nearly US$250 billion in GSSS bonds between 2015–2021, with strong acceleration since 2019
Corporates are the largest issuers, followed by sovereigns and financial institutions
Proceeds are concentrated in renewable energy, clean transport, and green buildings, with social bonds rising post-COVID-19
Barriers include high costs, limited issuer capacity, and weak project pipelines, requiring stronger regulation, transparency, and capacity building

Secondary File Resources

Secondary Resource Link(s)

Activating Alignment - Summary and Glossary

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