The Organization for Economic Co-operation and Development (OECD) has recently published a report that provides an overview of the engagement of development co-operation providers in support of the green, social and sustainability (GSS) bond market in developing countries. It explores how donor institutions can collectively support GSS bond issuances in developing countries, while also strengthening impact and the quality of associated reporting and measurement.

The report highlights five major policy areas in which donors can support the growth of the GSS bond market: i) Investment, ii) Insurance, iii) (Market)-Infrastructure, iv) Issuance and v) Impact.

Finally, the report presents three overarching recommendations for OECD DAC Committee members which, if implemented, would help co-ordinate efforts donor institutions are currently undertaking in a more coherent and ultimately more catalytic way:

• Co-ordinate on supporting large-scale blended finance instruments for GSS bonds through approaches such as investing in first loss mitigation in the form of funded junior, mezzanine tranches
in large, fixed-income funds or through joint guarantee programmes
• Promote the comparability and interoperability of Taxonomies and Standards and encourage harmonisation of high-quality impact measurement and reporting on GSS bonds
• Develop a strategic co-ordination mechanism for GSS bonds to facilitate co-ordination on impact and on blended finance instruments that aim for scale