A new platform, the Sustainability-linked Sovereign Debt Hub (SSDH), has been launched to help issuers of sovereign bonds deliver positive nature and climate outcomes. Developed by NatureFinance, previously known as Finance for Biodiversity, the hub aims to connect stakeholders and support the creation of standards and tools that incorporate nature and climate considerations into the sovereign bond ecosystem. SSDH’s advisory board includes representatives of the World Bank, European Bank for Reconstruction and Development, the Asian Infrastructure Investment Bank, the Asian Development Bank, the International Capital Market Association and the Climate Bonds Initiative. Sovereign bonds represent around 40% of the US$100 trillion global bond market but so far only one sovereign issuer, Chile, has issued a sustainability-linked bond, in March. The SSDH is expected to become fully operational by November.
The new Sustainability-linked Sovereign Debt Hub aims to help reshape sovereign debt markets by providing issuers with technical guidance and connections to build nature and climate outcomes into sovereign bonds.
— The EBRD (@EBRD) September 8, 2022