Janus Henderson conducted in-depth research into the actions being taken to implement decarbonisation across Emerging Markets. Given the panel’s concluding remarks, which focused on exploring the combination of successful initiatives being taken, policy frameworks, and financing need, we decided to create an index that could track all three issues via objective, third party, open sources.

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Key takeaways

• The scale of climate bond issuance in Latin America – $45 billion in absolute terms from 11 countries – is small for the region relative to the overall size of the global climate bond market, which now stands at over $1 trillion.
• Individual countries have divergent climate bond policies and frameworks, causing market fragmentation and creating obstacles to international investor participation in climate bond issuances.
• Coordination of policy frameworks and common use proceeds at a regional level is key to accelerating green bond issuance and progress towards decarbonisation in Latin America.