This Friday, March 31, saw the launch of “More for Less”, the scaling sustainability-linked sovereign debt paper. The paper was officially launched at the Bruegel-NatureFinance online event “Connecting the Dots: climate, nature and sovereign debt crisis” with the aim of discussing the correlation between sovereign debt markets and sustainability.

The new paper “More for Less” demonstrates how a viable market for sustainability-linked debt can address the triple challenge of public debt distress, climate shocks and nature degradation. This paper charts out building blocks, use cases and seven possible pathways for rapidly scaling up sustainability-linked sovereign debt.

From a starting point of $3.5 billion by the end of 2022, sustainability-linked sovereign bond issuance by emerging and developing economies has the potential to reach between $250 and $400 billion by 2030, according to NatureFinance.