On April 20, 2023, the IDB Group, its Green Bond Transparency Platform, together with B3 Brazil Stock Exchange and ANBIMA, Brazilian Financial and Capital Market Association, organized the workshop “Green Bond Transparency Platform – Market Development in Brazil and the Value of Transparency” dedicated to discuss the relevance of transparency in the disclosure of data as a way of expanding and strengthening the green and thematic bond market in Brazil.

The event started with the presentation of the Green Bond Transparency Platform (GBTP), a key reporting tool developed by the IDB to facilitate transparency and comparability for evidence-based decisions. The platform, launched in April 2021, covers 80% of the Latin America and the Caribbean´s (LAC) market volume, including more than 200 issuances reported by about 100 issuers (by May 2023).

The platform is a free and public tool that supports the harmonization and standardization of green and sustainable bonds, collecting first-hand data directly from issuers and external reviewers, including detailed use of proceeds and environmental impact data, methodologies used and relevant information such as frameworks, verifications, and certifications. It currently analyzes more than 200 standardized Key Performance Indicators.

Since its launch, the GBTP has trained more than 400 market actors and has facilitated high-quality data for research resulting in key findings that contribute to the evolution of the green bond market. In 2022, it was recognized with the “Initiative of the Year – Green Bond” Award by Environmental Finance, praised by the judges for its focus on emerging market countries.

This innovative tool provides a model for promoting standardized and transparent reporting, connecting all market actors with free access to assess impact: issuers, investors, regulators, academics, and civil society. Its modular and customizable structure allows for global replication in other jurisdiction for market development.

The Brazil virtual workshop agenda included outstanding speakers presenting about the importance of transparency and standardization in the issuance of sustainable bonds, the relevance of the independent reports and verification for business opportunities, and the pricing of green titles in the Brazilian market (see the agenda here).

In Brazil the market for green and ESG bonds has grown rapidly, in part replicating the global evolution but also reflecting the high potential for ESG projects in the country. Brazil is the second largest source of GSS+ debt in the region behind Chile. The total volume of bonds issued amounts to almost 31 USD billions by 157 issuers, of which 50% correspond to green bonds. Brazil leads the LAC market in sustainability-linked and transition instruments. The private sector dominates the country’s issuer type profile, with non-financial corporates contributing the largest share, followed by financial corporates.