Sovereign Transition: Unlocking the Investment Opportunity

There is currently an astonishing USD65 trillion of outstanding sovereign debt in the global fixed income market. And yet, the potential for investors to accelerate the transition to Net Zero, through their roles as sovereign bondholders,  is largely untapped. 

To close the gap, Climate Bonds has developed best practice recommendations to support investor engagement on sovereign transition planning for a sustainable future. The recommendations in this paper are intended to help accelerate sovereign, and hence economy-wide, climate action and investment, while addressing the current fiscal constraints faced by most governments globally. This can be mutually beneficial for sovereigns seeking rapid and sustainable development and investors managing their long-term risks and returns.