9th OECD Forum on Green Finance and Investment

Making blended finance work for the decade of delivery: What future for green, social and sustainability-linked bonds?

Oct 7, 2022 | 10:40 AM - 11:40 AM

Session Description

Green, social and sustainability-linked (GSSS) bonds are rapidly emerging as a tool for both donors and partner countries to finance the SDG financing gap and to tap into new sources of capital, such as from institutional investors. However, In the absence of appropriate regulatory standards, it is challenging to ensure issuers keep their sustainability commitments. Despite developments in some jurisdictions including the EU to clarify and standardise definitions, GSSS bonds are mainly guided by a set of voluntary industry standards and market discipline, which can lead to sustainability washing, especially in developing countries. This session will explore the current status of the GSSS bonds markets, related challenges and opportunities for developing countries, with a specific focus on the role donors can play in supporting their issuance and success.