Responsible Alpha Presents on LatAm Investor Green Bond Sentiment at the 8th Sustainable and Impact Investments International Conference
January 14, 2025
Responsible Alpha recently released a research report and presentation, funded by the Inter-American Development Bank (IDB) and in support of the Green Bond Transparency Platform, to evaluate the opportunities, risks, and barriers in green finance within Latin America and the Caribbean. With 666 million people or approximately 8.5% of the global population, green investments in Latin America are lagging as the region only accounts for 2% of the $1.9 trillion global green bond market. However, growing investor interest has potential to close this gap and unlock green finance in the region if proper transparency and regulatory measures are enacted.
Why It Matters
Trending Upward: Institutional investors want to increase their exposure to LAC green bonds and are actively looking to invest, indicating an increasing awareness of the region’s high exposure to climate risks.
Systemic Barriers: Despite interest, significant barriers, such as a lack of standardization in reporting and political instability, are preventing investors from entering the green bond market.
Path Forward: Investors highlighted that certification and issuer transparency were key factors in increasing the attractiveness of green bond adoption.