With two months until COP27, a new platform was announced that catalyze market for sustainability-linked sovereign bonds. Sovereign bonds are the largest asset class for many institutional investors, representing almost 40% of the 100 trillion dollars global bond market.

The Sustainability-linked Sovereign Debt Hub (SSDH) aims to connect stakeholders and support the creation of standards and tools that incorporate nature and climate considerations into the sovereign bond ecosystem.

The SSDH will be housed by NatureFinance (formerly Finance for Biodiversity Initiative) and will be supported by an Advisory Board consisting of, among others, the World Bank, European Bank for Reconstruction and Development (EBRD), Asian Infrastructure Investment Bank (AIIB), Asian Development Bank (ADB), International Capital Market Association (ICMA), Climate Bonds Initiative (CBI), The Nature Conservancy (TNC), the UN climate change high-level champion at COP26, and the Institute of International Finance (IIF).

The SSDH is expected to become fully operational by November 2022.