Financing Sustainability through Capital Markets: A Practitioner’s Guide and Toolkit for Thematic Bonds

Year Published

2024

Contributing Organizations

IDB Invest

Type of Resource

Guidance

Other

Languages

English

Spanish

Portuguese

Relevant Topics

Core Topic

Thematic Bonds

Target Audience

Asset Managers

Banks

Relevant Geography

Latin America and the Caribbean

Resource Description

This resource provides guidance for scaling the thematic bond market—including green, social, and sustainability-linked bonds—while ensuring credibility and impact. It outlines key principles and policy considerations to support high-integrity growth.

Why This Matters

Thematic bonds are a growing tool for financing climate and development goals. This resource helps ensure their integrity and effectiveness as the market expands.

Key Insights

Highlights risks of greenwashing due to inconsistent definitions, weak disclosure, and insufficient verification
Recommends common frameworks, robust reporting, external reviews, and alignment with transition plans
Emphasizes the importance of interoperability across taxonomies and clear guidance for use-of-proceeds and performance targets
Suggests actions for regulators, issuers, and investors to improve transparency, accountability, and market confidence
Stresses the need for capacity building, especially in emerging markets

Secondary File Resources

Secondary Resource Link(s)

Financing Sustainability through Capital Markets - (Portuguese)

Financing Sustainability through Capital Markets - (Spanish)

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