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Latin America & Caribbean: Green finance state of the market 2019
Published: September 2019
Editor/s: Climate Bonds
Author/s: Climate Bonds
File: Download PDF

Study carried out by Climate Bonds Initiatives (CBI), sponsored by IDB Invest, the IDB, and the United Nations Development Program (UNDP) is the first detailed analysis of the green finance state of the market in Latin America and the Caribbean (LAC) since the first issuer from the region entered the market in 2014.
LAC has a combined population of 628m and land area of 20m km2, which respectively amount to 8% and 15% of global totals. Despite only representing 6% of global GDP, it contributes about 12% of global GHG emissions.
LAC issuers have contributed 2% of global green bond issuance volume to date; 41% of this is from Brazil. LAC green bond issuance has picked up strongly in 2019, driven by Chile’s two green Sovereigns. H1 2019 issuance at USD3.7bn is three times higher than H1 2018; 40% higher than H1 2017.
Transitioning to a green and climate-resilient economy is thus crucial to ensure that LAC can reduce its GHG emissions, better hedge against climate risks and thrive in the long run. Green bonds could be an important instrument to support this transition.
This report explores the progress that has been made and the opportunities for LAC countries. It looks at regional themes in green bond issuance as well as issuance from companies that operate in climate-aligned sectors and potential green bond issuance from public sector entities. It also provides country-level overviews for Argentina, Brazil, Chile, Colombia, Mexico and Peru, as well as for Central America.
Looking ahead, green bond growth is expected across the region, driven by much needed investments in green infrastructure. Sustainable agriculture and blue (ocean-based) activities also present opportunities.