This publication is the second instalment of CBI´s State of the Market series for the Latin America & Caribbean (LAC) region. The report describes the shape and size of labelled Green, Social and Sustainability (GSS) debt issued by entities domiciled in LAC to the end of June 2021 (H1 2021). The market analysis is complemented by an overview of key policy developments and opportunities for growth of sustainable finance in LAC.

To reflect the extraordinary market conditions brought about by the COVID-19 pandemic in 2020, as well as Climate Bonds’ growing database coverage, this report includes an evaluation of the broader sustainable finance market beyond green bonds in LAC to the end of H1 2021. This includes all years to this date, i.e. cumulative data since market inception in 2016.

This report covers three overarching debt themes based on the projects, assets and activities financed: Green, Social, and Sustainability (GSS). These data and the subsequent analysis are predominantly based on the Climate Bonds Green, Social and Sustainability Bond Databases.

For the purpose of this report, the sustainable debt market is defined by debt instruments that (a) have a label, and (b) directly finance sustainable projects/assets in the form of use of proceeds (UoP) bonds and labelled loans.