Latin America & Caribbean Green finance state of the market 2019

Green bond issuance is low in Latin America, but there is significant growth potential across the region Global green bond issuance started with multilateral development banks raising funds for climate-related projects in 2007/08. The first issuer from Latin America and the Caribbean (LAC) entered the market in 2014. LAC issuers have contributed 2% of global green bond issuance volume to date; 41% of this is from Brazil.

LAC has a combined population of 628m and land area of 20m km2, which respectively amount to 8% and 15% of global totals.1,2 Despite only representing 6% of global GDP, it contributes about 12% of global GHG emissions.3 It is among the most biodiverse but also vulnerable regions when it comes to climate change, not only because of direct exposure to climate risks, but also due to a high sensitivity to such risks and relatively low adaptive capacity.

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.