Sustainable Debt Market
Summary Q1 2024
June 2024

Key figures

Scorecard: Aligned GSS+ debt

• By 31st March 2024,
Climate Bonds recorded
cumulative volume of
USD4.7tn in aligned green,social, sustainability, andsustainability-linked (SLBs)
bonds, (collectively GSS+).
• Q1 2024 was the mostprolific quarter recorded
by Climate Bonds for aligned
GSS+ deals.
• USD272.7bn of aligned
volume was added in
the first quarter (Q1) of
2024, 15% more than the
USD237.2bn recorded in Q1
2023, and 41% more than the
USD193bn from Q4 2023.
• Cumulative aligned green
bond volume crossed the
USD3tn mark.
• Cumulative aligned
sovereign volume
exceeded USD0.5tn.

Q1 2024

Cumulative since 2006

USDbn

Contribution

Contribution

Green

195.9

72%

3003

64%

Social

42.3

16%

875

19%

Sustainability

31.4

11%

780

16%

Sustainabilitylinked bonds

3.1

1%

51

1%

272.7

100

4709

100%

Total

GSS+ bonds captured by Climate Bonds
Bonds meeting the requirements outlined in
Climate Bonds screening methodology qualify
for inclusion in the datasets and are classified
as aligned.
Labelled bonds for which there is not enoughinformation to determine eligibility for dataset
AlignedAs 2024 began, there were expectations that theFederal Reserve would be cutting interest rates
during the year. Investors were keen to lock inprevailing yields, and there was strong appetite
for increased supply which extended to GSS+
labelled deals. Q1 2024 was the most prolificquarter ever recorded by Climate Bonds, withaligned GSS+ volume reaching USD272.7bn
beating the 2021 Q1 figure of USD272bn.
The most active month was January with
USD112.6bn. Green bonds continue to make thelargest contribution with total aligned issuancevolume reaching USD195.9bn, 72% of the total
and a 25% increase as compared to Q1 2023, and
43% above Q4 2023.

USDbn

inclusion are classified as pending until
sufficient disclosure is available to decide.
Bonds failing to meet the requirements of
Climate Bonds screening methodology areclassified as non-aligned and are excluded
from the datasets.
Pending

Non-aligned

Cumulative
total GSS+

Cumulative as of 31/03/2024

4.709tn

110.5bn

1.0535tn

5.8732tn

YTD

272.7bn

45.5bn39.8bn357.9bn

Cumulative aligned GSS+ debt volume reached USD4.7tn
1000
Sustainability
800

Social
SLB

600

Green

200

24
Q1

20

23
20

22
20

21
20

20
20

19
20

18
20

20

-2
01
20
06
Sustainable Debt Market Summary Q1 2024 Climate Bonds Initiative

17

0

6

USD Billions

400

Source: Climate Bonds Initiative1

All regions apart from Asia-Pacific exhibited
growth year-on-year (YOY). Europe maintained its
position as the largest regional source of aligned
GSS+ volume, with USD149.5bn or 55% of thetotal priced in Q1. North America rebounded with
a 68% increase YOY driven by an increase in deals
from the green theme. Africa’s presence spiked by
1692% YOY to USD4.9bn, through nine deals fromseven issuers led by the African Development
Bank (AfDB) with three deals with combined
volume of USD3.1bn) and Ivory Coast (USD1.1bn).

USD272.7bn of aligned GSS+ volume was added in Q1 2024

Aligned GSS+ deals were priced in 34 currencies
in Q1, with EUR and USD together capturing
almost three quarters of the volume (73%).

USD Billions

250
200
150
100
50
0
Green

Currencies deployed for GSS+
deals in Q1 2024
USDbn

Contribution

EUR

125.3

46%

USD

74.6

27%

JPY

13.7

5%

CNY

10.8

4%

AUD

8.1

3%

GBP

8.0

3%

KRW

6.5

2%

SEK

4.7

2%

CHF

3.5

1%

AED

2.4

1%

Other

15.1

6%

272.7

100%

Grand Total

Overall, the largest issuer type was nonfinancial corporates with 28% of the volume or
USD76.7bn. This was dominated by the green
theme (USD71bn).

Non-financial corporates brought
28% of Q1 2024 aligned volume

Q1

Q2

Q3

Q4

250
200
150
100
50
0
2020

2021

2022

2023

2024
Source: Climate Bonds Initiative

55% of aligned Q1 volume originated from Europe
1000
AfricaLAC

800

Supranational

GovernmentBacked Entity
21%

N America

600

Financial
Corporate18%

Asia-Pacific
Europe400

USD Billions

NonFinancial
Corporate
28%

Sustainability

Q1 2024: Record quarter for aligned GSS+ volumes

Development Bank 8%

Sovereign19%

SocialSource: Climate Bonds Initiative

USD Billions

Currency

SLB

200

0
20062016

Local Government 5%
Source: Climate Bonds Initiative

Sustainable Debt Market Summary Q1 2024 Climate Bonds Initiative

2017

2018

2019

2020

2021

2022

2023

2024

Source: Climate Bonds Initiative2

Q1 2024
market highlights

Largest aligned non-sovereign green issuers in Q1 2024
Issuer NameCountry

Green

Pattern Energy

USA

8.8

European Union

SNAT

7.6

European Investment Bank (EIB)

SNAT

6.9

Northvolt

Sweden5.0

KfW

Germany

3.2

Volkswagen

Germany

3.0Bank of Jiansu

China

2.8

E.ON SE

Germany

2.7

Air Products and Chemicals, Inc.

France2.5

Emirates Nuclear Energy Corp.

UAE

2.4

• Q1 2024 aligned green bondvolume was recorded at
USD195.9bn, up by 25% fromsame period in 2023.
• The largest contribution came from Japan
which priced two sovereign deals to support
its Green Transformation Plan (GX) withcombined volume of USD10.6bn. The deals
were issued bearing a transition label, andClimate Bonds evaluated them against its
Green Bond Dataset Methodology.1• Europe led the green bond market with a
58% share. Aligned volume from the region
reached USD113.2bn from 246 issuers pricing
in Q1. This was followed by Asia-Pacific andNorth America with volumes of USD40bn and
USD30.1bn respectively.
• Aligned green deals originated from 44
countries plus supranational (SNAT), spread
across 696 deals in Q1 2024.
• The USA rebounded from a lacklustre 2023
and was the largest single country source ofgreen bonds adding 287 deals with combined
volume of USD27.6bn. This figure was twice thevolume priced in Q1 2023.

Total volume from ten largest issuers

44.9

Social• Social bonds hailed from 19 countries issuing
729 instruments. USA priced 620 instruments
accounting for 85% of the total social bondcount in Q1 2024.

• By the end of Q1 2024,
69 issuers had priced
729 aligned social bonds
with cumulative volume of
USD42.3bn, up by 7% from Q1 2023.
• The largest contribution to the social theme
came from French issuers who collectively
priced aligned volume of USD13.72bn, followedby the Netherlands and South Korea withvolumes of USD6.1bn and USD6bn respectively.

• Germany and France ranked second and thirdin aligned green bond volumes at USD22.2bn
and USD16.5bn respectively.
• Non-financial corporates topped the green
table with USD71bn of aligned issuance inQ1 (36%), led by USA low-carbon energy
company Pattern Energy. Pattern’s USD8.8bn
green loan was part of a USD11bn financing
deal to support the development of SunZia
Transmission and SunZia Wind, the largest
clean energy infrastructure project in the USA.2

Non-financial corporates priced
37% of the aligned green bonds
in Q1 2024

Development Bank 6%
Local Government 2%

USDbn• Government-backed entities made a 65%
contribution to aligned social bond volume,
adding deals worth USD27.3bn.
• Caisse d’Amortissement de la Dette Sociale(CADES) contributed 30% to the social theme
via three bonds with combined volume of
USD12.6bn. CADES is the largest issuer of alignedsocial bonds and by the end of Q1, Climate Bonds
had recorded USD143bn in cumulative volume.

Largest aligned non-sovereign social issuers in Q1 2024
Issuer nameCountry

Volume (USDbn)

Caisse d'Amortissement de la Dette Sociale

France12.6

Nederlandse Waterschapsbank NV

Netherlands

4.5

Korea Housing Finance Corp

Korea

2.7

AfDB

SNAT

2.0

BNG Bank

Netherlands

1.7

Total volume from five largest issuers

23.5

Top five currencies priced 96% of the social bonds
20

GovernmentBacked Entity
13%

16

NonFinancial
Corporate
37%

12

Sovereign
24%

USD Billions

8

Financial
Corporate18%

40

Source: Climate Bonds Initiative

Sustainable Debt Market Summary Q1 2024 Climate Bonds Initiative

USD

EUR

KRW

MXN

AUD

Others
Source: Climate Bonds Initiative3

Sustainability• Q1 2024 aligned sustainability
volumes reached USD31.4bn,
down by 13% on same perioda year earlier.

Largest aligned non-sovereign
sustainability issuers in Q1 2024
Issuer Name

Volume(USDbn)• The Asia-Pacific region topped the table with
36% of volume reaching USD11.3bn.

EIB (European
Investment Bank)

2.3• A total of 26 countries led by Mexico, plus SNAT,
priced 134 sustainability instruments.

Agence Francaise deDeveloppement EPIC

2.0

• Of the deals, 43% were priced in USD withcombined volume of USD13.5bn. EUR and AUD
attracted the second and third largest volume
with USD7.6bn and USD3.6bn respectively.

Woori Bank

1.4

Ministeries Van de
Vlaamse Gemeenschap

1.4South Australian Government
Financing Authority

1.3

Total volume from fivelargest issuers

8.4• Mexico was the largest single contributor
for the sustainability theme, pricing a new
2032 EUR2bn (USD2.2bn) deal in January,
and reopening its 2025 deal in March for
MXN3bn (USD178m).

Sustainability-linked bonds

France3bn

Others
17.4bnAustralia
South 2.4bn
Korea
2.2bn

Source: Climate Bonds Initiative

800
600

• Six issuers priced eight SLB’s worth of
USD3.1bn in the first quarter of 2024.

• French jewellery retailer Goldstory SAS, theparent company of Thom Group, priced thelargest SLB volume. The high yield issuer
published its Sustainability Linked Bond
Framework in January 2024, and later thatmonth priced a pair of SLBs with combined
volume of EUR850m (USD922m) split between
a floater (EUR350m/USD380m) and a fixedcoupon (EUR500m/USD543m) both maturing
in 2030. The first key performance indicator(KPI) was tied to all three scopes of emission
with sustainability performance targets(SPTs) aiming for a 30% reduction in absoluteemissions by 2030 compared to a 2023
baseline. The second KPI addresses ethicalsourcing of metals, and the SPT requires that
85% of materials are certified as such by 2030.

Supranational
3bn

1000

• Almost 30% of total volumes werein alignment with Climate Bonds
SLB Database Methodology.3

400
USD Millions• The aligned deals originated from either
Europe or LAC with 73% and 27% of themarket share respectively.

Mexico
3.4bn

SLBs were priced from six countries led by France• Aligned SLB volume reached
USD3.1bn in Q1 2024, a 37%
drop compared to Q1 2023.

• All of the aligned SLBs originated from nonfinancial corporate entities.

Mexico: The largest source of aligned
sustainability deals in Q1 2024

200
0FranceNetherlands Germany

Chile

MexicoSwedenSource: Climate Bonds Initiative

Aligned sustainability-linked
bond issuers in Q1 2024
Issuer Name

Volume(USDm)

Goldstory SAS

922.3

Koninklijke Ahold Delhaize NV

762.7

TUI AG

542.6

Inversiones CMPC SA

500.0

Cemex SAB de CV

323.3

Humlegarden Fastigheter AB

47.2

Total SLB volume

Sustainable Debt Market Summary Q1 2024 Climate Bonds Initiative

3098.1

4

Spotlight: Growing SLB alignment with Climate Bonds
SLBDB methodology
Climate Bonds launched its SLBDB
methodology in June 2023, followed byits dataset in January 2024, to assess theclimate credibility and ambition of SLBs. The
methodology requires the use of GHG targets
that cover all material emission sources(defined by sector), and alignment with a
1.5°C sector-specific pathway.
There has been a relative improvementin the credibility and ambition of SLBs
in Q1 2024. There were three consecutive
months where almost 50% of issuance wasaligned with the methodology. Due to fallingissuance count and volumes ex-China, where
GHG KPI selection remains low, the alignment
proportions fell to 28.3% in Q1 2024. However,when compared YoY, aligned issuance has
increased from 22.2% alignment in Q1 2023.
The main reason for non-alignment in Q1
2024 remains partial emission coveragein targets. The vast majority of SLB issuanceis already tied to GHG targets (83.5% in Q12024), however not all issuers are covering all
material scopes of emissions in their targets(42.7%). This is assessed against the Climate
Bonds SLBDB methodology definition of
sector-specific material emission sources.
There are issuers from every sector achieving
this and some examples of best practice canbe seen on the Climate Bonds website.4
The majority of the Q1 aligned issuance(70.2%) came from entities operating in hardto-abate sectors such as agri-food, pulp andpaper, cement, and real estate. Some issuers
are repeat aligned issuers, e.g., Inversiones
CMPC SA, featured as a best practice casestudy on the Climate Bonds website. Other
debut issuers, such as real-estate company
Humlegarden Fastigeter AB, demonstratecontinued interest in the SLB format.
While not as mature as the green bond market,
SLBs provide the means for companies andgovernments to develop transition plansand decarbonise rapidly to align with 1.5°C
pathways. Therefore, Climate Bonds’ callto action for all stakeholders in the SLB
market is to ensure two thirds of all SLB
deals in 2024 are in alignment.
To this end, Climate Bonds can offer guidance
to SLB issuers, their underwriters, investors,
and SPO providers, to achieve this target.

28% of SLBs aligned in Q1 2024
Fully aligned

Strongly aligned

Aligning

Not Aligned

100%

80%

60%

40%

20%

0
Q1
2018

2019

2020

2021

Q2

2022

Q3

Q4

2023

Q1
2024

Source: Climate Bonds Initiative

Partial emission coverage in targets is the main barrier to alignment
Partially not in line with pathway

Partial emission coverage in targets

Not in line with pathway

Lack of GHG Targets

Use of Economic Intensity Target

Lack of footprint disclosure

Lack of Scope 3 disclosure

Lack of target disclosure

100%

80%

60%

40%

20%

0
2018

Sustainable Debt Market Summary Q1 2024 Climate Bonds Initiative

2019

2020

2021

2022

2023

Q1 2024

Source: Climate Bonds Initiative

5

The sovereign GSS+
bonds club
• By the end of Q1 2024,
Climate Bonds had recordedaligned GSS+ bonds from 53
sovereign issuers.
• Cumulative aligned
sovereign GSS+ volume
crossed the USD0.5tn mark, reaching
USD538.3bn.
• 22 sovereign issuers contributed USD52.5bn
in aligned volume in Q1 2024, 37% more thanthe USD38.4bn priced in the same period of2023, and 24% over the USD42.4bn captured
in Q4 2023.
• New aligned deals with combined volume of
USD32.3bn came from 11 issuers, while 16
issuers tapped existing bonds contributing
USD20.4bn.
• Japan (USD10.6bn) and Romania (USD2.2bn)
priced debut green bonds, while Ivory Coast(USD1.1bn) joined the GSS+ market with asustainability deal.

France remains thesovereign GSS+ champion
In January 2024, France added
a fourth point to its green
yield curve with a EUR8bn(USD8.7bn) 2049 deal. The
syndicated deal was originallydestined to be EUR5bn but
was increased when the order book reached
EUR98bn, covering the final deal size morethan 12 times. The bond achieved spreadcompression of 2bp and obtained a greenium.
France’s green yield curve trades inside its vanilla
curve in the secondary market, meaning thatpricing benefits extend to taps. French investors
accounted for 20% of the order book with theremainder diversified across western Europe.
France is the largest single issuer of green
bonds, having amassed green liabilities of
EUR70bn (USD78.6bn) by the end of Q1 2024.
The government is committed to support a green
transformation, evaluating all its expenditures
against the six environmental objectives of the
EU Taxonomy. More than 18% of its debt bears
the green label.

Aligned sovereign GSS+ deals priced in Q1 2024
Country

Currency

Local bn

USD bnStatus

Japan

Green

JPY

1599.3

10.6

NewFrance

Green

EUR

8.0

8.7

RepeatMexicoSustainability

EUR

2.0

2.2

RepeatRomania

Green

EUR

2.0

2.2

New

Austria

Green

EUR

1.9

2.0

RepeatChile

Social

USD

1.7

1.7

RepeatHungary

Green

HUF

1.5

1.6

RepeatIvory Coast

Sustainability

USD

1.1

1.1

New

Hong Kong, China

Green

USD

3.8

0.8

RepeatSharjah UAE

Sustainability

USD

0.8

0.8

Repeat

India

Green

INR

50.0

0.6

Repeat

Total

32.3

Aligned sovereign GSS+ taps, Q1 2024
Country

Theme

Currency

Germany

Green

EUR

5.0

5.4

UK

Green

GBP

2.5

3.1

Austria

Green

EUR

2.7

2.9

Netherlands

Green

EUR

2.2

2.3

Belgium

Green

EUR

1.6

1.7

Italy

Green

EUR

1.3

1.4

Thailand

Sustainability

THB

25.0

0.7

India

Green

INR

50.0

0.6

Ireland

Green

EUR

0.5

0.6

France

Green

EUR

0.4

0.4

Denmark

Green

DKK

2.6

0.4

Indonesia

Green

IDR

3950.00.3

Switzerland

Green

CHF

0.2

0.2

MexicoSustainability

MXN

3.0

0.2

New Zealand

Green

NZD

0.2

0.1

Hungary

Local bn

Status

Green

HUF

22.7

0.1

Grand Total

20.4

Cumulative aligned sovereign GSS+ volume crossed USD0.5tn in Q1
Sustainability

Social

SLB

Green

160
120

Ivory Coast80
USD Billions

Ivory Coast priced its firstsustainability bond in January
2024. The West African nation,and the world’s largest cocoa
producer, priced a USD1.1bn
sinker maturing in 2033. The
deal is the country’s first dollar-denominatedliability for seven years and follows a EUR533m
AfDB backed sustainability loan announced

Theme

40
0
2016-2019

Sustainable Debt Market Summary Q1 2024 Climate Bonds Initiative

2020

2021

2022

2023

2024
Source: Climate Bonds Initiative6

in January 2024 to support the developmentof resilient infrastructure in the country. Bothinstruments reference Ivory Coast’s 2021
Sustainable Framework, which states thateligible social categories may include Access to
Basic Infrastructure, Access to Basic Services,
Employment and Competitiveness, and thePromotion of a Resilient and Inclusive COVID-19
Recovery.5 Eligible green categories werenamed as Terrestrial and Aquatic Biodiversity
Conservation, Pollution Prevention and Control,
Sustainable Use of Water and Wastewater
Management, and Renewable Energy.
Ivory Coast is the sixth African nation to deploy
GSS+ debt. Dedicated green and socially
responsible investors are seeking credible
investment opportunities from a diverse range
of issuers across the credit spectrum, hence aresupportive of these deals. Issuing in a foreign
currency can introduce new sources of support tonations where local currency capital is limited.

Romania
In February 2024, Romania
priced its first green bond,referencing its 2023 Sovereign
Green Bond Framework. The
EUR2bn deal was issued via
auction, and attracted bidsof EUR10bn, achieving spread compressionof 45bps in the primary market. The Ministryof Finance stated its ambition to attract newinvestors with the green label and has said it will
issue green bonds annually. Its 2023 Sovereign
Green Bond Framework names eight eligible
project categories, referencing the Environmental
Objectives of the EU Taxonomy, and the United
Nations Sustainable Development Goals (UNSDGs).6 Proceeds from the first deal have been
earmarked for expenditures pertaining to theextension of the Bucharest Metro, and therehabilitation of irrigation infrastructure to
support adaptation in the agri-food system,
among others.

Japan
Japan priced its debut
sovereign green bond in midFebruary, a 10-year JPY800bn(USD5.3bn) deal, and a 5-year
deal of similar size was addedat the end of that same month.
Both obtained Certification under the Climate
Bonds Standard. The Transition labelled bonds
were issued to support the implementation ofJapan’s GX Plan and were added to Climate
Bonds Green Bond Dataset.

Six African nations have deployed GSS+ debt
Country

Year offirst deal

Numberof deals

Currencies

Total USD
issuedTheme

Ivory Coast

2024

1

USD

1.1bn

Sustainability

Benin

2021

1

EUR

692m

Sustainability

Egypt

2020

2

USD, CNY

1.2bn

Green,
sustainability

Ghana

2020

1

EUR

41m

Green

Seychelles

2018

1

USD

15m

Green

Nigeria

2017

2

NGN

71m

Green

Sukuk registered strong growth in first quarter of 2024.
Aligned sukuk issuance in Q1 reached a record
level and more is expected.
A sukuk is a sharia-compliant bond-like
instrument used in Islamic finance, andat the end of Q1, Bloomberg recorded
the outstanding market size at close to
USD900bn.8 Harnessing this capital flow
based on Islamic principles would capture
an additional source of financing to support
green and sustainability objectives.
Sovereign deals can introduce scale and could
encourage Islamic investors to expand theirinvestment mandates which are anchoredby the ‘do no harm’ principle, to reflect theimportance of climate change and commit to
dedicated green or sustainable investment
mandates. By the end of Q1, Indonesia had
priced aligned sovereign green sukuk withcumulative volume of USD8.8bn spreadover ten instruments in a mixture of IDR and
USD. Malaysia has also priced two sovereign
sustainability sukuk with combined volumeof USD3bn in USD and MYR. Oman published
its Sustainable Finance Framework in January2024, with the intention of issuing green,social, or sustainability bonds, loans, orsukuk. This framework encompasses seveneligible green and social categories, including
Climate Change Adaptation, Food Security,
Sustainability, and Biodiversity Protection and
Restoration Projects.9
Three other nations in the Middle East havesignalled support for GSS+ sovereign sukuk but
have yet to issue this instrument type. Sharjah,
one of the United Arab Emirates, published its
Sustainable Financing Framework in February
2023.10 It priced its first sustainability bond,a USD1bn nine-year deal, in February 2023
followed by a USD750m 12-year deal a year
later. Egypt has priced two green deals against
its 2022 Sovereign Sustainable Financing
Framework; one USD, and one CNY, adding up
to USD1.2bn.11 Finally, Saudi Arabia published
its Green Financing Framework in March 2024
but has yet to issue against it.12 Local currency
deals would likely use the sukuk structure tomobilise the local investor community.

Aligned sukuk reached USD2.4bn in Q1 2024
IssuerCountry

Currency

Al Rajhi Sukuk Ltd

Caymen Islands

USD

1bn

1

DIB Sukuk Ltd

UAE

USD

1bn

1

Indonesia (reopenings)

Indonesia

IDR

250m

3

My EG Services Bhd

Malaysia

MYR

66m

2

LBS Bina Group Bhd

Malaysia

MYR

42m

1

2.4bn

8

Total

USD

Numberof deals

Of the UoP from these deals, 55% was earmarked
to support research and development (R&D),
including 18% for hydrogen in the steel-making
process and the decarbonisation of the thermal
process. Supporting necessary technological

Sustainable Debt Market Summary Q1 2024 Climate Bonds Initiative

7

innovations to ensure the required emission
reductions is essential, including those in theearly stages of R&D, subject to research activities
being focused on ambitious emission reductions.
In accordance with this, Japan has committed
to pursuing efforts to limit temperature increase
to 1.5°C, consistent with statements made at theG20 and G7.

subsidies to promote the introduction ofclean-energy vehicles. The largest subsidy
allocation is directed to silicon carbide power
semiconductors for renewable energy, cleantransport, electricity storage batteries, electricity
transmission and distribution, and to strengthen
supply chains for critical materials in the
manufacturing of storage batteries.

The remaining 44.5% of the UoP was earmarked
to support decarbonisation objectives,
which include subsidies for low-carbon
transport and batteries, subsidies to improve
the insulation performance of houses, andThe wider GX plan supports partial gasfired power generation for the electricity
network, which would not meet the criteria for
Certification under the Climate Bonds Standard.
The potential for new technology that allows

ammonia to replace coal in coal-fired power
stations with has also been discussed in thecontext of the GX Plan. However, the UoP being
funded by the first two deals did not include
any allocation to gas-fired power generation
activities, nor any allocation to operational
activities related to ammonia co-firing in coal
fired plants. Future UoP bonds linked to thisplan will be assessed at the time of issuance.
Climate Bonds’ recommendations for evolving
the GX Plan are outlined in its 2023 report Japan:
Policies to Grow Credible Transition Finance.7

Green bonds financing nuclear energy
In Q1 2024, several issuersin the USA and Canada
priced green bonds thatare dedicated to or havenuclear energy as an eligible
green project in their green
financing frameworks. Green bond-funded
nuclear energy projects are drawing attention,
especially in North America.
In March, Bruce Power LP, a Canadian
nuclear energy company, priced a CAD600m(USD441bn), 7-year green bond to finance thedevelopment, operation, and refurbishmentof new and existing nuclear projects. The
company recently communicated that it would
only issue green labelled bonds in the future,
showcasing its commitment to sustainablefinance. Bruce Power was the world’s firstissuer to price a bond with Nuclear UoP via
its 7-year CAD500m (USD396m) deal in 2021.
The bond referenced the entity’s 2021 Green
Financing Framework.13
In the USA in the same month, Marylanddomiciled Constellation Energy Generation
LLC became the first US corporate to financenuclear energy projects through the thematic
debt market. The carbon-free energy provider
which also deploys wind, hydro, and solar,
priced a USD900m 30-year deal.

In February 2024, the Government of Canada
priced its second green bond, a CAD4bn(USD2.9bn) 10-year deal, referencing its
November 2023 updated Green Bond
Framework.14 The new Framework broadened thelist of eligible green projects that Canada’s green
bonds are permitted to finance adding nuclear
energy. This affirms Canada’s commitment toinvest in the technology as a part of its 2050 netzero target. At the sub-national level, the Provinceof Ontario published its updated Sustainable
Bond Framework in January 2024.15 Ontario
made the move to add nuclear energy to its listof eligible green project categories, which it may
deploy in future green or sustainability bonds.
Each of these issuers either stated in theirframeworks, or it was observed in Second
Party Opinion reports, that they have taken
measures and complied with relevant laws
and regulations to ensure the safety of site
operations and nuclear waste disposal.16 Safety
is the priority when it comes to the operation of
nuclear power plants, and now nuclear energy
has also been included in the EU Taxonomy forsustainable activities.17 In addition to climatechange mitigation, the Taxonomy also sets out
the Do No Significant Harm (DNSH) criteria for
eligible nuclear activities, including stringent
requirements on the disposal of radioactive

Sustainable Debt Market Summary Q1 2024 Climate Bonds Initiative

waste. It further stipulates that power plants
will have to use approved, certified accidenttolerant fuel from 2025. The recognition of
nuclear energy by one of the world’s mostinfluential sustainable finance taxonomies
removes the barrier to issuers financing thetechnology with green bonds. In November
2023, state owned French utility company
EDF priced a EUR1bn 4-year green bond.
The UoP was earmarked to support nuclearrelated expenditures that are fully alignedwith the technical screening criteria of the EU
Taxonomy.18 EDF was the first European issuer
to complete a transaction of this kind.
Climate Bonds’ Green Bond Dataset
Methodology also considers nuclear energy
as an eligible activity, provided that thesafety, waste management, and social andenvironmental impacts of financed facilities
are thoroughly assessed and disclosed. The
aforementioned green bonds are all alignedwith the screening criteria of the Methodology.

8Endnotes
1. Climate Bonds Green Bond Dataset Methodology, April 2024,
Climate Bonds Initiative, Green Bond Database Methodology | Climate
Bonds Initiative
2. Pattern Energy Closes $11 Billion Financing of Largest Clean Energy
Infrastructure Project in U.S. History, December 27 2023, Pattern
Energy Group, Pattern Energy Closes $11 Billion Financing of Largest
Clean Energy Infrastructure Project in U.S. History - Pattern Energy
3. Climate Bonds Sustainability-Linked Bond Database Methodology,
June 2023, Climate Bonds Initiative, Sustainability-Linked Bond
Database Methodology | Climate Bonds Initiative
4. https://www.climatebonds.net/market/SLB-case-studies
5. Sustainable Framework, July 2021, RÉPUBLIQUE DE CÔTE D’IVOIRE,
Côte-dIvoire-Sustainable-Framework-July-2021-vF.pdf (tresor.gouv.ci)
6. The framework related to the financing of projects that are intended
to protect the environment and combat climate change, December
2023, Government of Romania, ICG_Word_Portrait (gov.ro)
7. Japan Policies to Grow Credible Transition Finance, September
2023, Climate Bonds Initiative, Japan Policies to Grow Credible
Transition Finance | Climate Bonds Initiative
8. Security type = Sukuk

9. Oman’s sovereign sustainability framework: https://www.mof.gov.
om/UploadsAll/ProjectsSections/1704881175957Sustainable%20
Finance%20Framework.pdf
10. Emirate of Sharjah Sovereign Sustainable Financing Framework,
February 2023, Government of Sharjah, Emirate of Sharjah Sovereign Sustainable Financing Framework.pdf (sfd.gov.ae)
11. The Arab Republic of Egypt Sovereign Sustainable
Financing Framework, November 2022, Ministry of Finance,
Egypt Sovereign Sustainable Financing Framework_vF(mof.gov.eg)
12. Kingdom of Saudi Arabia Green Financing Framework, March 2024,
Ministry of Finance, Green-Financing-Framework-KSA-16April2024.
pdf (ndmc.gov.sa)
13. Bruce Power Green Financing Framework, June 2021,
Bruce Power, Bruce Power Green Financing Framework
14. Government of Canada Green Bond Framework, November 2023,
Government of Canada, Green Bond Framework Report EN v02.pdf(canada.ca)
15. Ontario Sustainable Bond Framework, January 2024, Ontario,
Ontario Sustainable Bond Framework (officeontariendefinancement.ca)

16. Second-Party Opinion, Constellation Energy Green Financing
Framework, Sustainalytics, February 16 2024, 48ac7f07-a620-4bf5aa48-6e656992d8aa (constellationenergy.com)
17. EU taxonomy: Complementary Climate Delegated Act toaccelerate decarbonization, European Commission (2022), EU
taxonomy: Complementary Climate Delegated Act to accelerate
decarbonisation - European Commission (europa.eu)
18. EDF Green Financing Framework, EDF, July 12, 2022, edf-greenbond-framework-2022-07-12.pdf

Prepared by Climate Bonds Initiative

Climate Bonds Initiative © June 2024
Authors: Neeraj Chouhan, Caroline Harrison
Contributors: Daniel Costa, Ang Gao, Matthew MacGeoch
Editorial Support: Stephanie Edghill, Caroline Harrison
Design: Godfrey Design, Joel Milsteadwww.climatebonds.net

Disclaimer: The information contained in this communication does not constitute investment advice in any form and the Climate Bonds Initiative is not an investment adviser. Any reference to a financial organisation or
debt instrument or investment product is for information purposes only. Links to external websites are for information purposes only. The Climate Bonds Initiative accepts no responsibility for content on external websites.
The Climate Bonds Initiative is not endorsing, recommending or advising on the financial merits or otherwise of any debt instrument or investment product and no information within this document should be taken as
such, nor should any information in this communication be relied upon in making any investment decision. Certification under the Climate Bond Standard only reflects the climate attributes of the use of proceeds of adesignated debt instrument. It does not reflect the credit worthiness of the designated debt instrument, nor its compliance with national or international laws. A decision to invest in anything is solely yours. The Climate
Bonds Initiative accepts no liability of any kind, for any investment an individual or organisation makes, nor for any investment made by third parties on behalf of an individual or organisation, based in whole or in part on
any information contained within this, or any other Climate Bonds Initiative public communication

Sustainable Debt Market Summary Q1 2024 Climate Bonds Initiative

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