• Comment: Nothing here to suggest a topic split of green bonds in emerging markets is itself notable. Content would be better merged into existing article already in the mainspace. Bobby Cohn 🍁 (talk) 15:21, 12 December 2025 (UTC)

Green bonds in emerging markets Overview

Green bonds are debt instruments issued to finance projects with environmental benefits, including renewable energy, low-carbon transport, and climate-resilient infrastructure. The green bond market first emerged in high-income countries in the late 2000s, but issuance in emerging economies has grown steadily over the past decade.[1][2]

Growth of green bonds in emerging economies

Several emerging markets have adopted green bond frameworks to attract foreign investors and reduce financing costs for environmental projects. Countries such as China, India, Brazil and South Africa have implemented national guidelines to support the expansion of green finance.[3]

China is among the world’s largest green bond issuers, responsible for a significant share of global labelled issuance. India has experienced rapid growth, driven in particular by solar-energy investments.[4] In Latin America, Brazil has issued green bonds linked to sustainable agriculture and forest-conservation initiatives.[5]

Challenges

Despite rapid expansion, several barriers limit the development of green bond markets in emerging economies. Investors often perceive higher risk due to currency volatility, limited transparency, or concerns about greenwashing.[6]

Many issuers rely on external verification to demonstrate compliance with international standards. Institutions such as the World Bank, the IMF and the Climate Bonds Initiative have published guidelines aimed at improving disclosure and strengthening market credibility.

Outlook

Green bonds are increasingly used to support low-carbon development in emerging markets, although overall issuance remains smaller and less evenly distributed than in developed economies.

  1. ^ World Bank. “What Are Green Bonds?” 2023.
  2. ^ OECD. “Mobilising Green Finance in Emerging Markets and Developing Economies.” 2021.
  3. ^ IMF. “Green Finance in Emerging Markets.” Working Paper, 2022.
  4. ^ Climate Bonds Initiative. “Emerging Markets State of the Market Report.” 2023.
  5. ^ Reuters. “Brazil Expands Sustainable Bond Issuance.” 2023.
  6. ^ Financial Times. “Emerging Market Green Bonds Face Risk Premium.” 2022.