Sponsored by the Central American Bank for Economic Integration (CABEI), the Green Finance Opportunities in Central America & the Caribbean 2021 report aims to support green investment in the region by facilitating greater engagement between asset owners, investors and developers, as well as to help issuers come to market.
Green infrastructure case studies for renewable energy, low-carbon transport, sustainable water and waste management contribute to a better understanding of green opportunities in Central America and the Caribbean (CAC). These and other sections, such as an overview of the region’s green bond market and a step-by-step guide for green bond issuance, are included in the report, which is also available in Spanish.
First-hand insights:
- There is special potential for green finance to support investments in green infrastructure, especially linked to energy, transport, water and waste. Growth in most countries will also come from issuer type diversification.
- Given CAC’s geographical and economic profile, agriculture and the blue economy are also areas that offer enhanced opportunities, more so than in other regions.
- Labelling bonds from existing climate-aligned issuers as they refinance presents an additional opportunity to bring visibility and size to CAC’s green finance market.
- With the COVID-19 pandemic, social and sustainability bond issuance increased dramatically throughout Latin America, especially through sovereigns.
- Various drivers can support further growth in sustainable finance in CAC, such as increased issuance from the public sector (including sovereigns), greater engagement and integration of sustainability factors within the financial sector, and the introduction of policies and incentives targeting sustainable investment.
