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Growth of Green, Social, Sustainability and Sustainability Bonds (GSSS) in Latin America and the Caribbean
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Growth of Green, Social, Sustainability and Sustainability Bonds (GSSS) in Latin America and the Caribbean

The Latin America and the Caribbean (LAC) region has significantly increased its green, social, sustainability and sustainability (GSSS) bond issuance, rising from 9.3% of total bond issuance in 2020 to nearly 35% in 2023 . GSSS in sovereign bonds also increased significantly from 36% in 2022 to 50% in 2023. LACs are at the global forefront of sustainability linked bond (SLB) issuance, leveraging innovative structures to attract a wider pool of investors. However, effective oversight and regulation of GSSS emissions remains a critical challenge: improved oversight through sustainable funding frameworks is needed. While the LAC market has evolved from self-labeling to adopting external assessments, further improvements in pre- and post-issuance assessments are needed to ensure a meaningful impact on sustainable and inclusive development. In addition, the harmonization and interoperation of sustainable national taxonomies in LAC countries is key to stimulating the interest of regional and international investors.