Sustainable Debt Market
Summary H1 2024
August 2024

• By 30 June 2024, Climate
Bonds had recorded acumulative volume of
USD5.1tn in aligned green,social, sustainability, andsustainability-linked (SLBs)
bonds, (collectively GSS+).
• USD554bn of aligned
GSS+ volume wascaptured in H1 2024, a 7%
year-on-year (YOY) increase
compared to H1 2023.
• Green bonds accounted
for 70% of H1 aligned
volume, reaching
USD385.1bn. This wasfollowed by sustainability
and social volume
contributing USD93.9bn(17%) and USD70.5bn(13%) respectively.
• January was the mostprolific month for aligned
GSS+ deals in H1.
• Europe was the sourceof USD291.1bn (53%) ofaligned GSS+ volume in H1.

H1 at a glance
GSS+ market thrives
Global interest rates remained higher than had
initially been expected going into 2024. Global
debt issuance climbed to USD13.2tn during
this period, compared to USD9.8tn in H1 2023,
an increase of 35%. Aligned GSS+ volume
constituted 4.2% of the H1 2024 total, a decline
from 5.3% seen in 2023.1 Nevertheless, the GSS+
market is thriving, with new issuers entering themarket at pace. By the end of H1 2024, aligned
GSS+ volume had reached USD554bn, an
increase of 7% on the prior year.
EUR was the dominant currency of aligned
GSS+ issuance with 44% of H1 2024 volume(USD246bn), just under the 47% EUR market
share seen in H1 2023. This was followed by USD,
CNY, and GBP volumes of USD159bn, USD26bn

Scorecard: Aligned GSS+ debt

H1 2024

Cumulative since 2006

USDbn

Aligned deal
count

USDbn

Aligned deal
count

Green

385.1

1,628

3201.529,007

Social

70.5

1,646

906.0

12,685

Sustainability

93.9

571

896.2

5,057

Sustainabilitylinked bonds

4.6

14

52.9

124

554.1

3,859

5056.646,873Total

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 databaseinclusion 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.

AlignedCumulative as of 30/6/2024

Pending

Non-aligned

USD5.1tn

USD26.4

USD1.1tn

H1

USD554.0bn

USD16.2

USD93.2bn

Q2

USD251.2bn

USD7.6

USD46.7bn

H1 2024 aligned GSS+ volume reached USD554bn		
Green

SLB

SocialSustainability

1000
800
600
400
USD Billions

Key figures200
0

Sustainable Debt Market Summary H1 2024 Climate Bonds Initiative

2019

2020

2021

2022

2023

H12024
Source: Climate Bonds Initiative1

Europe was the largest source of H1 aligned GSS+
volume contributing USD291.1bn, an increaseof 13% YOY. Africa produced the most aggressive
YOY regional growth with USD6.6bn, an increaseof 412% from USD1.3bn in H1 2023. Seven
issuers from the region have priced aligned
GSS+ deals in H1, led by African Development
Bank (AfDB) responsible for a total of USD4.8bn
in green, social, and sustainability deals across
AUD, EUR, USD, and ZAR.
Volume from non-financial corporate issuers
made the largest contribution among the issuer
types, reaching USD145.1bn, a 47% increase
compared to H1 2023. This included 35 aligned
deals of at least USD1bn, the largest of which
was a USD8bn green loan from USA low-carbon
energy company, Pattern Energy.

120
100
80
60
40
20
0
January

February

March

April

May

June
Source: Climate Bonds Initiative

Aligned GSS+ volumes recorded an increase of 7%in the H1 2024 compared to H1 2023
400
2024
300

2023

200

USD Billions

Sovereign issuance had a record first half in H1
2024 with 33 countries pricing a total volumeof USD104bn aligned sovereign GSS+ volume,
a 12% increase compared to the USD93bn
captured for H1 2023. H1 2024 Sovereign GSS+
highlights include Australia’s debut AUD7bn(USD4.6bn) 10-year, sovereign GSS+ issue and
Iceland’s EUR50mn (USD53m) social deal issued
to support its strong position on gender equality.

January was the most prolific month for the aligned
GSS+ issuance in H1 2024.

USD Billions

and USD20bn, respectively. The Federal Republicof Germany was the largest single contributor
to the EUR GSS+ aligned volume, pricing ninealigned GSS+ bonds totalling USD14bn in H1.

100
2023
0
Green

2024

Social2023 2024
2023 2024
Sustainability

SLB
Source: Climate Bonds InitiativeGreen• By the end of H1 2024,
cumulative aligned green
bond volume had reached
USD3.2tn.
• H1 2024 aligned green
volume was recorded at
USD385.1bn, up 14% compared to H1 2023.
• In Q2, USD180.8bn in aligned green bondvolume was added.
• Europe was the largest source of aligned green
volume (USD237bn) contributing 62%.
• Aligned green deals originated from 52 countries.
The USA made the largest contribution of
USD47.6bn in the first half of 2024 reflecting an
increase of 57% compared to the same period
from the prior year. The USA was followed byGermany and France with issuance volume of
USD47.2bn and USD41.1bn, respectively. France’s
share of aligned green volume increased by
123% from the same period last year.

Largest aligned non-sovereign green issuers in H1 2024
Issuer Name

Volume USDbn

Deal Count

EU

12.2

3

Supranational

EDF

9.5

4

FrancePattern Energy

8.8

1

USA

KfW

7.8

5

Germany

EIB

6.9

3

Supranational

Northvolt

5.0

1

SwedenEngie SA

4.1

1

Chile

RWE AG

3.8

4

Germany

Volkswagen

3.7

5

Germany

Stack Infrastructure

3.3

1

USA

Sustainable Debt Market Summary H1 2024 Climate Bonds Initiative

Country

2

50

750

40

600
USD Billions• The European Union (EU) was the single largest
issuer with USD12.2bn priced through one newdeal maturing in 2050 (EUR7bn/USD7.6bn) andtapped two existing deals maturing in 2033
(EUR2.3bn/USD2.5bn) and 2043 (EUR2.0bn/
USD2.2bn). The bonds will finance the green
transition, energy efficiency, clean energy,
climate change and adaptation, water waste
management, clean transportation andinfrastructure, and other enabling activities.2
The EU is the second largest issuer of aligned
GSS+ bonds after the World Bank (USD293bn).
It has priced cumulative volume of EUR159bn(USD182bn) spread over five green bonds(EUR60.2bn/USD65.6bn) and 13 social bonds(EUR98.5bn/USD116.3bn).

Social
• By the end of H1 2024,
cumulative aligned social
bond volume had reached
USD906.0bn.

Ja

Ita

na

ra
n

at
io

ce

Su
p

Source: Climate Bonds Initiative

Largest aligned non-sovereign social issuers in H1 2024
Issuer Name

Volume USDbn

Deal Count

Caisse d'Amortissement de laDette Sociale

12.6

3

FranceNederlandse Waterschapsbank NV

4.5

4Netherlands

Korea Housing FinanceCorporation

4.0

30

South Korea

BNG Bank NV

3.8

5Netherlands

African Development Bank (AfDB)

3.1

3Supranational

Council of Europe
Development Bank

2.8

4

Supranational

Korea SMEs and Startups Agency

2.3

25

South Korea

Fannie Mae

2.0

140

USA

Freddie Mac

1.8

90

USA

Asian Development Bank (ADB)

1.7

4

Supranational

Country

95% of aligned social deals were priced in the top five currencies
30• In H1 2024, 111 issuers pricedaligned social volume of USD70.5bn, a declineof 21% compared to USD86.5bn recorded forH1 2023.

25• In Q2, USD28.0bn in aligned social bondvolume was added.

15

20

10
USD Billions• Europe was the most prolific region for thealigned social bond volume in H1 2024 witha total of USD32.4bn, followed by Asia-Pacificand North America which added USD17.8bn
and USD11.7bn, respectively.

Ch
i

rm

US
A

Ge
Source: Climate Bonds Initiative• Non-financial corporate issuers were
responsible for 34% of the aligned green volume
in H1, collectively contributing USD145.7bn.

pa
n
Sw
ed
en

0

UK

0

Sovereign
24%

ly

150

l

10

na

300

y

20

Fr
an

USD Billions

Financial
Corporate
18%

450

an

NonFinancial
Corporate
34%

Government-Backed
Entity16%

Deal Count30

Deal Count

Local government2%nDevelopment
Bank 6%

The USA was the most prolific source of aligned green deals in H1 2024Spai

34% of green deals were priced
by non-financial corporates

5
0
USD

EUR

KRW

AUD

MXN

Others
Source: Climate Bonds Initiative

Sustainable Debt Market Summary H1 2024 Climate Bonds Initiative3• A total of 1646 social instruments originated from28 countries in H1. Most (87%) originated fromthe USA, where 37 issuers priced 1438 deals
with total volume of USD11.3bn, or USD7.8m
each on average. Contributions ranged from
USD2.0bn over 140 deals from Fannie Mae,
to USD11.7m over four deals from Maricopa
County Industrial Development Authority.
• Social bonds in H1 2024 were priced in 19
currencies with USD making the largest
contribution (USD29.6bn), followed by EUR(USD24.2bn).
• Government-backed entities made a 56%
contribution to aligned social bond volume
adding USD39.2bn.
• French social security provider Caissed’Amortissement de la Dette Sociale (CADES)
issued the largest volume from three deals
amounting to USD12.6bn. At the end of H1
2024, CADES was the third largest GSS+ issuer(following World Bank and the EU) having priced
cumulative aligned volume of USD143.3bn.

Sustainability• By the end of H1 2024,
cumulative aligned
sustainability bond volume
had reached USD896.2bn.
• H1 2024 aligned
sustainability volume
reached USD93.9bn, up 8% on the USD86.7bn
recorded for H1 2023.
• In Q2, USD40.1bn in aligned sustainability bondvolume was added, the same amount as Q2 2023.
• Supranationals (SNAT) dominated the aligned
sustainability debt market with 37% of the volume,
which was followed by Asia Pacific and Europe
with 23% and 21% market share, respectively.
• Asia-Pacific recorded a 65% increase inaligned sustainability volume with 56 issuers
pricing 92 deals.
• World Bank (IBRD) made the largest
contribution with 34% of the total sustainability
volume, the proceeds of which will be used
to finance healthcare, education, foodsecurity, affordable finance, and used toprovide financial and technical support for thegeneration of clean energy sources.3

Europe priced almost half (46%) of
the social aligned debt in H1 2024

Supranationals priced over onethird of aligned sustainability deals

Africa 5%
LAC
7%
North
America17%

Europe46%

Supranational
37%

Others42%

USA
7%

Asia-Pacific25%

Turkey 5%
France 5%South Korea
4%
Source: Climate Bonds Initiative

Source: Climate Bonds Initiative

Largest aligned non-sovereign sustainability issuers in H1 2024
Issuer Name

Volume USDbn

Deal CountWorld Bank (IBRD)

28.0

91

Supranational

Wells Fargo Commercial Mortgage
Trust 2024-SVEN

2.7

21

USA

EIB (European Investment Bank)

2.3

2

Supranational

AFD (Agence Française deDéveloppement)

2.0

1FranceAL Rajhi Sukuk Ltd

2.0

2

Saudi Arabia

International Development
Association

1.9

1Supranational

Woori Bank

1.7

5

South Korea

South Australian Government
Financing Authority

1.4

2

Australia

Ministeries Van de Vlaamse
Gemeenschap

1.4

1Belgium

Starwood Property Trust Inc.

1.2

2

USA

• Development banks made the largest
contribution with volume of USD37.7bn
followed by financial corporates (USD21.5bn),
which leapt 140% YOY.

• USD accounted for 55% of aligned
sustainability volume in the first half of2024. This was followed by EUR and GBP
contributing volume of USD17.6bn and
USD5.7bn, respectively.

Sustainable Debt Market Summary H1 2024 Climate Bonds Initiative

Country• Asociacion Civil Sumatoria Para Una Nueva
Economia priced the first sustainability deal
from a not-for-profit, with a USD933mn
deal with proceeds earmarked for circular
economy, clean energy and renewableenergy, and food security.

4

Sustainability-linked Bonds

The Netherlands issued a quarter of deals under the SLB theme• By the end of H1 2024,
cumulative aligned SLB
volume had reached
USD52.9bn.

1000• H1 2024 aligned SLB volume
was USD4.6bn, a 45%
decline compared to the USD8.2bn captured
for H1 2023.

600• In H1 2024, the Netherlands was the largest
country source of SLB volume, contributing
USD1.1bn (25%) from two issuers.

200

d

en
Sw
ed

la
n
Fi
n

M

ex
ic
o

le
Ch
i

m

Ja
pa
n

y
an

k

Ge
r

m

ar

ce

De
n

Fr
an

nd

s

0

rla

• SLBs originated from three regions in H1. The
majority (71%) came from Europe (USD3.2bn)
followed by Latin America and Caribbean(LAC) and Asia-Pacific with USD823m and
USD511m, respectively.

400

Ne
th
e

• In Q2, six aligned deals with total volume of
USD1.5bn were added.

USD Billions

800

Source: Climate Bonds Initiative

Largest aligned non-sovereign SLB issuers in H1 2024
Volume USDm

Deal Count

Goldstory SAS

922.3

2

FranceKoninklijke Ahold Delhaize NV

762.7

1

Netherlands

TDC Net A/S

542.9

1

Denmark

TUI AG

542.6

1

Germany

Inversiones CMPC SA

500.0

1

Chile

Daiwa House Industry Co Ltd

387.8

1

Japan

PostNL NV

324.5

1

Netherlands

Sovereign

CEMEX SAB de CV

323.3

2

Mexico• By the end of H1 2024,
cumulative aligned
sovereign GSS+ volume hadreached USD590.7bn, from
56 issuers.

Obayashi Corp

123.8

1

Japan

CapMan Oyj

64.9

1

Finland• Of the 14 aligned SLBs recorded in H1, 13 camefrom issuers operating in the non-financial
corporate sector. A EUR60m (USD64m) deal from
Finnish private equity asset manager CapMan OYJ
was the only deal from a financial corporate.
• French jewellery company Goldstory SAS was
the largest aligned SLB issuer in H1, pricing two
deals with combined volume of USD933m.

Issuer NameCountry

Aligned sovereign GSS+ volume of USD104bn was priced in H1 2024

• Green is the most popular
theme, deployed by 36 issuers, and 80%(USD478.4bn) of cumulative aligned sovereign
GSS+ volume.

30
New deals

25

Taps

20

81% of aligned sovereign
GSS+ volume is green

15
10
USD Billions

SLB 2%
Sustainability
Social 12%5%50January

February

March

April

May

June
Source: Climate Bonds Initiative

Green
81%

• In H1 2024, 33 countries added aligned
sovereign GSS+ volume totalling USD104bn,
a 12% increase compared to the USD93.0bn
captured for H1 2023. This translates into a
record half year for aligned sovereign GSS+
volumes and compares to total volume of
USD158.8bn priced in the whole of 2023.

Source: Climate Bonds Initiative

Sustainable Debt Market Summary H1 2024 Climate Bonds Initiative• In Q2, aligned sovereign GSS+ volumeof USD47.6bn was added, split between
USD27.4bn in new deals from 11 countries,
and USD20.8 in taps from 12 countries.
• The first quarter is typically the most prolificfor sovereign debt, including thematic, and in
Q1 2024, aligned volume reached USD56.3bn,
a record high.
5Australia’s first green bondobtained a greenium

Aligned sovereign GSS+ volume priced in H1 2024
New deals
Green
USDm

SocialUSDm

Sustainability
USDm

Total
USDm

Japan

10.6

10.6

Italy

9.7

9.7

France8.7

8.7

Australia

4.7

4.7

Austria

4.0

4.0

Germany

3.2

3.2

Canada2.9

2.9

MexicoRomania

2.2

BrazilSingapore

2.0

Hungary

2.0
1.9

1.9

Chile

2.2
2.2

2.2

1.7

1.7

1.6

1.6

Serbia1.5

1.5

Cote d'Ivoire

1.1

1.1

1.0

1.0

Philippines
Iceland

0.8

China_HK

0.8

0.9

0.1

0.2

0.2

9.3

62.8

Australia is targeting net zero by 2050 andpublished its Green Bond Framework in
December 2023.4 Eligible project categories arelisted as renewable energy, energy efficiency,clean transportation, low-carbon buildings,
adaptation, water and wastewater, managementof living natural resources, biodiversity, circular
economy, and pollution prevention and control.

Iceland uses social bonds tosupport its strong position ongender equality

0.8

UAE

0.8

0.8

Uzbekistan

0.7

0.7

India

0.6

0.6

Indonesia
Total new
deals

51.7

1.8

Reopenings
Germany

10.8

10.8

UK

10.1

10.1

Austria

3.2

3.2

France

2.9

2.9

Italy

2.4

2.4

Netherlands

2.3

2.3

Spain

2.1

2.1

Belgium

1.7

1.7

Colombia
New Zealand

1.3

1.3

0.8

0.8

Thailand

0.7

0.7

India

0.6

0.6

Denmark

0.6

0.6

Ireland0.6

0.6

Indonesia

0.5

0.5

Switzerland

0.2

0.2

MexicoHungary

0.2

0.2
0.1

0.1

Peru

0.1

0.1

Total
reopenings

38.9

1.3

1.0

41.2

All sovereign
GSS+

90.5

3.1

10.4

104.0

Sustainable Debt Market Summary H1 2024 Climate Bonds Initiative

Australia was the only debut
issuer in Q2 2024, pricing its
AUD7bn 2034 in early June.
The deal attracted an orderbook of AUD22.9bn, covering
the transaction size by morethan three times. Climate Bonds determinedthat the deal priced inside its own yield curve
obtaining a greenium, with strong interest fromboth domestic (65% allocation) and international
investors. More than 100 institutional investors
were allocated bonds, of which 15 were new to
the Australian Office of Financial Management(AOFM) syndicated deals. The largest offshore
allocations were to the UK (12%) and Europe(11%). The highest allocation by investor type
was to fund managers (63%) which included
asset managers, insurance, and pension funds.
The successful transaction reflects a year of
preparation by the AOFM and Australian Treasury
and reflects the government’s commitment togrow the Australian GSS+ market.

Iceland priced a 3-year
EUR50m (USD53m) social deal
in June. Use of proceeds (UoP)
were earmarked to support
gender equality projects
including women on low
incomes, and a reduction in unpaid work suchas caring. According to the Global Gender Gap
index, Iceland is the most gender equal society,and has maintained its position for over a decadeand a half.5 Iceland published its Sovereign
Sustainable Financing Framework in 2021, which
identified seven green, four blue, and five social
project categories (Climate Bonds evaluates blue
bonds under the green theme).6 It first came tothe market with a EUR813m (USD845m) green
bond in March, with proceeds earmarked forclean transportation, renewable energy, green
buildings, land use, circular economy and waste
management, ICT, and adaptation and resilience.

6

Cumulative Climate Bonds Certified volume tops USD285bn.
By the end of H1 2024, bonds with cumulative
volume of USD285bn had obtained Certification
against the Climate Bonds Standard, which
includes USD19bn of bonds priced in H1
2024. The Certification scheme is widely
acknowledged to be the gold standard forassuring UoP credibility. Three of the deals thatwere Certified in H1 2024 are highlighted below.

Milwaukee Metropolitan Sewerage District
The Milwaukee Metropolitan
Sewerage District (MMSD)
is a regional government
agency that provides water
reclamation and flood
management services in
29 municipalities with a total populationof about 1.1 million people.7 One of thelargest sewerage utilities in the USA, foralmost a century MMSD has recycled residual
microbes from the water cleaning process into
Milogranite, a nitrogen fertiliser which it sells
commercially.
The MMSD 2035 Vision is a plan to achieve acleaner Lake Michigan through zero sewage
overflows, zero basement sewage backups,
and improved storm water management.
MMSD also has an Urban Biodiversity Plan,a Sustainability Plan, an Energy Plan, and a
Resilience Plan. MMSD has stated its ambition
to reduce its carbon footprint by 90% frombaseline conditions by 2035.
Since 2020, MMSD has achieved programmatic
Climate Bonds Certification for bonds witha total volume of USD355.7bn which are
Certified against Climate Bonds Water Criteria.8
Kestrel Verifiers is the appointed third-party
verifier. In May 2024, MMSD priced a USD90bn
deal, spread over 20 tranches with a ladderedmaturity profile beginning with USD2.8bn
maturing in 2025, and extending to USD6.9bn
maturing in 2044.

Banco Popular Dominicano
Banco Popular Dominicano(BPD) is the largest private bankin the Dominican Republicwith retail and commercial
presence. In 2019, BPD
signed the United Nations
Environment Programme Finance Initiative(UNEP FI), a partnership between the UN and theglobal banking system to align their work withsustainable objectives. BPD offers preferential
loans to retail customers to support energy
efficiency measures, and to both retail andcommercial customers to support leasing orpurchase of green vehicles, solar panels, andelectric vehicle chargers. BPD priced its first green
bond in May 2024, a DOP300m (USD5m) ten-year
deal. BPD was the first financial entity to placea green bond through the Dominican Republic
Stock Exchange and the deal obtained Climate
Bonds Certification against its Solar and Wind
Sector Criteria. An independent assurance report
was provided by Pacific Corporate Sustainability(PCS) in which the environmental objectives of
BPD were stated as a reduction in CO2 emissions
and a reduction in fossil fuel consumption.
A second issuer from the Dominican Republic,
EGE Haina, has priced two aligned deals. In 2021,
it priced a USD20,000 deal followed by USD40,000
in 2022. Proceeds were earmarked for renewableenergy. The Dominican Republic priced its firstsovereign deal at the end of H1 (but not soon
enough to make it into the H1 dataset).

FleetPartners
FleetPartners provides vehicleleasing, fleet management,
heavy commercial vehicles,
salary packaging, and novatedleasing with operations acrossAustralia and New Zealand. It
published its Green Bond Financing Framework
Year of issuancein January 2024, stating clean transportation
as the eligible UoP category for its green assetbacked securities (ABS). Its first green ABS waspriced in May 2024, an AUD75m (USD50m) deal
with a 10-year maturity. FleetPartners obtained
Climate Bonds Certification for the deal against
Climate Bonds Low-Carbon Transport Criteria,with a verification report supplied by DNV.9
In H1 2024, a total of nine issuers obtained
Climate Bonds Certification for green bonds
with all or part of their UoP earmarked for
low-carbon transport. Bonds certified against
Climate Bonds Low-Carbon Transport Criteria
automatically meet the green definitions fortransport in the EU Taxonomy. Eligibility underthese Criteria fall into two groups.
1. Automatically eligible• Most fully electric, hydrogen, or otherzero direct-emissions transport including
private vehicles, passenger trains, urban
subway/metro, trams, and their directly
supporting infrastructure.
• Electric charging and hydrogen
fuelling infrastructure.
• Public walking and bicycle infrastructure.
Several types of manufacturing facilities forcomponents of the above.
2. Thresholds and other considerations
required (see table)• Zero direct-emissions (such as electric orhydrogen) freight rail, for which <25% of its
freight uses fossil fuels.
• Hybrid private vehicles (not including lorries
or trucks).
• Fossil-fuelled public transport such as buses
and trains.
• Technology and infrastructure that allow for
car sharing schemes, road charging systems,
better utilisation of public transport, andother such systems.

2020

2026

2030

2060

Passenger activity threshold(direct emissions g CO2e per p-km)

50

0

0

0

Freight activity threshold(direct emissions g CO2e per p-km)

25

n/a

21

18

Sustainable Debt Market Summary H1 2024 Climate Bonds Initiative

7

Steel and Cement entities building a green future

Climate Bonds is building a Transition Plan
Monitor (TPM), which is an assessment of thequality of entity-level transition plans. Steeland cement were chosen as the first sectors toundergo analysis via the TPM.10
Climate Bonds’ review of the steel andcement sectors has revealed two encouraging
developments. Firstly, there has been an
increase in aligned green bond volumes fromsteel and cement issuers and, secondly, most(57%) of the 21 companies assessed had
credible transition plans in place.

Aligned steel green bond issuance surges 166%
1.6

Pending
Aligned

1.2

0.8
USD Billions

To support the flow of investment towards
decarbonising the hard-to-abate sectors,
Climate Bonds has developed tools andguidance, including hard-to-abate sector
criteria, transition plan guidance, and theinclusion of these activities as part of its
Certification programme, as well as GSS, and
SLB dataset assessment methodologies.

0.4

0
2020

2021

2022

H12024
Source: Climate Bonds Initiative

Secondary steel production received the largest UoP allocation in H1 2024
Renewables
H1 2024

Increased aligned green
bond volumes from steel
and cement

Primary Steel

Secondary Steel

0.5

0
USD Billions

1.0

1.5
Source: Climate Bonds Initiative

Steel

CementIn H1 2024, Climate Bonds
recorded aligned green
bond volume from entities
operating in the steel
industry of USD1.5bn,
up 166% from 2023 total
issuance volume. This came exclusively fromthe Asia-Pacific region, with Chinese issuers
contributing two-thirds of aligned volumes(64.1%), South Korea one-third (32.8%),
and Taiwan (Province of China) 3.2%. The
largest deal came from Korean steelmaker
POSCO, which priced a USD500m deal
financing a 2.5m ton/year electric arc furnace.
The single largest issuer in this six-month
period, however, was Chinese steelmaker
HBIS Group (aka Hesteel, Hegang), which
priced aligned deals with combined volumeof USD626.9m, with UoP earmarked forsecondary steel (scrap steel) purchasing.

Aligned green bond volumes
with UoP allocated to cement
related activities had exceeded
2023 full year (FY) issuance by
the end of H1 2024. Deals from
Heidelberg Materials and Anhui
Conch Cement amounted to USD1.17bn, up
17.1% versus FY2023. In 2023, the single USD1bn
green bond deal with UoP earmarked for cement
came from Cemex. Heidelberg, first issued two
SLBs in Jan and Nov 2023 each worth EUR750m(USD813.2m), respectively, and priced a green
bond in June 2024. Cemex issued a green
bond in March 2023, and a pair of SLBs worth
MXN11.5bn (USD675m) in October 2023. Thisillustrates the combined use of green and SLB
instrument formats to finance and demonstratecommitment to decarbonisation by issuers
operating in hard-to-abate sectors.
The geographical representation of cumulative
green bonds from cement issuers has been
diverse with 21.1% of the volume from Asia
Pacific, 33.9% from Europe, and 44.9% from
LAC, amounting to USD2.2bn of aligned
volume from ten countries.
In line with its Cement Criteria, Climate Bonds
encourages past and future cement green
bond issuers to disclose key related data, which
streamlines the assessment process for both
Climate Bonds and investors.12 In particular,
this should include disclosure on emission
intensities of cement production facilities, andthe thresholds for the use of alternative fuels,
including waste-to-energy projects.

Aligned cement green bond volume rises 17.1%
1.2
Pending
0.8

USD Billions

Most of the UoP from steel bonds issuedin H1 2024 was dedicated to the purchasingof secondary steel for use within electricarc furnaces (USD1.0bn), followed by financing
for electric arc furnaces (USD0.5bn), withthe remainder for renewable energy
production. These activities are among
the decarbonisation levers highlighted
in Climate Bonds Steel Criteria as being
critical for global steel production to reachnet zero. 11

2023

Aligned

0.4

0
2021

2022

2023

H12024
Source: Climate Bonds Initiative

Sustainable Debt Market Summary H1 2024 Climate Bonds Initiative8

An assessment of transition
plan ambition and credibility
Climate Bonds is developing a TPM, a dataset
which tracks and assesses transition plans
globally, on a sector-by-sector basis. For thisanalysis, transition plans published by all green
bond issuing steel and cement companies(i.e., Climate Bonds Green Bond Dataset(GBDS) aligned and non-aligned green bondissuance) was assessed against the TPM
methodology, in line with the categorisation
structure proposed in Climate Bonds’
Navigating Corporate Transitions report.13
The outcome of the analysis is theclassification of transition plans into thefollowing categories:

Action plan assessment category

Definition

Fully aligned>95% of levers mentioned are aligned with thescreening criteria

Strongly aligned

Levers all in line, with some (<30%) eligible notaligned or eligible pending disclosure

Aligning

Levers are all in line, with some (<50%) either eligible
not aligned or eligible pending disclosure

Not aligned

Levers fall short of the above requirements

n.a.

No levers mentioned

Most steel and cement green bond issuers have a commitment to net
zero, half have a credible transition plan10

1. No action – the entity has yet to commit
to net zero.

8

2. Committed – the entity has committed
to net zero and has board oversight over thetransition plan.

6

4. Aligned – the entity has strongly-aligned
targets and an action plan, with a significant
dedicated financial plan, and emissions thatalign with the pathway.
5. Net Zero – the entity’s emissions
are at net zero.
This categorisation is also partially relates toan entity’s action plan, as follows:
Further detail on the methodology for thisdataset will be published later in 2024.

Key findings
Of the 21 steel and cement entities
that have issued a green bond, 19 havealready made a commitment to achieving
net zero, of which nine have the key pieces ofa credible transition plan and are categorised
as TPM Aligning or Aligned.
Of this same pool of issuers, while all GBDS
aligned issuance comes from issuers who
at least are Committed, as per the TPM
methodology, there is a trend of GBDS
aligned issuance coming from issuers withmore detailed and credible transition plans.
Of those classified as Committed, 50% havepriced aligned green bonds, while threequarters of Aligning issuers have GBDSaligned issuance.

Pending

4
USD Billions

3. Aligning – the entity has met the criteria
for Committed, and has targets aligningwith a sector specific pathway, an action
plan aligning with the Climate Bonds Sector
Criteria, a financial plan, and emissionsaligning with targets.

Aligned20
No action

Committed

Aligning

AlignedSource: Climate Bonds Initiative

Mexican cement producer Cemex, meeting therequirements across their targets, action plan,
finance plan, and emissions performance to meetthat category.
Most (57%) steel and cement green bondissuers have aligned action plans. The ambitionand quality of strategies and levers defined andpublicly disclosed as part of an entity’s transition
plan are varied. There are three state-backed orstate-owned entities in steel which do not havethe same reporting requirements as listed privatecompanies, whereas almost none of the cement
issuers are state-owned or backed.

62% of cement issuers have aligned
action plans for decarbonisation

Stronglyaligned
25%

Aligning
37%

It is extremely promising that moststeel and cement issuers have preparedtransition plans, and that entities are
increasingly deploying green bonds tofinance the required decarbonisation
measures. It is vital that entities operating inthese hard-to-abate sectors develop transition
plans to demonstrate their commitment
and ambition to investors, and that thosetransition plans become the platform forengagement and support from investors, inturn facilitating fundraising via the sustainabledebt markets.

54% of steel issuers have aligned
action plans for decarbonisation
Stronglyaligned
15%
Notaligned46%
Aligning
39%

Not aligned
38%

The only issuer operating in either sector
to have a TPM Aligned transition plan is

Sustainable Debt Market Summary H1 2024 Climate Bonds Initiative

Source: Climate Bonds Initiative

Source: Climate Bonds Initiative9

Spotlight: France’s podium position
French aligned GSS+ volume is on track for a record 2024

France has been on
the vanguard of every
development in sustainablefinance and continues toinnovate. In its Olympic
year, France stands on thesustainable finance podium
as a clear winner.

Green

80

As of the end of H1 2024, the country was thethird largest source of cumulative aligned GSS+
volume with USD542.9bn, following SNAT(USD763.2bn) and the USA (USD714.6bn). Greenis the most popular label with 50% of aligned
volume, social has 40%, while sustainability
bonds contribute 8% and SLBs 2%.
Following the first deal in 2008, aligned French
GSS+ debt volume peaked in 2021 at USD120bn.
If the pace of issuance evidenced in H1 2024 is
replicated in the second half of the year, 2021’s
record could be broken

More than half of cumulativealigned French volume comesfrom government -backed entities
Development Bank 4%

NonFinancial
Corporate
12%

Sustainability

100

Financial
Corporate
16%

60
40
USD Billions

France hosted the 21st United Nations Conferenceof the Parties (COP21) in 2015, which led to theParis Agreement, a legally binding international
agreement to limit global warming to well below
2°C. Since then, France’s strong sustainable financepolicy has underpinned the immense growth of its
GSS+ market, beginning with the energy transition
law Article 173 in 2018, accompanied by theannouncement of its intention to stop importing
products linked to deforestation by 2030. Most
recently, in December 2023, France ruled thatfunds operating under its socially responsible
ISR label will, from the start of 2025, be barredfrom investing in any companies that launch newhydrocarbon exploration, exploitation or refining
projects. France deserves a spot on the podium
for its leadership in sustainable finance.

Sovereign
15%

Social

SLB

120

20
0
20082018

2019

2020

France is the largest source of aligned social
deals with USD216.2bn by the end of H1. This has
been championed by its social security agency
Caisse d’amortissement de la Dette Sociale(CADES), which at the end of H1 had priced over
USD143.3bn in aligned social bonds, making it
the largest issuer in that category. A further 22
French issuers have priced aligned social deals.

2021

2022

2023

H1 2024

Source: Climate Bonds Initiative

French GSS+ deals commenced in earnest in 2012
with three deals from local government entities
Île-de-France, Provence-Alpes-Côte d’Azur, andHauts-de-France (which had previously issued asustainability bond in 2008) and one from French
corporate Air Liquide.
In 2017, France became the first core sovereign
borrower to issue a green bond. By the end of H1

France’s top three superlatives at the end of H1 2024
1. Third largest source of aligned GSS+ volume (USD542.9bn)
2. Largest source of aligned social volume (USD216.2bn)
3. Largest source of aligned sovereign GSS+ volume (USD81.1bn)

Largest non-sovereign French issuers of cumulativealigned green bond volume
IssuerIssuer type

USD bnSociete des Grand Projects

Government-backed entity

29.0

EDF

Government-backed entity

20.3

Engie SANon-financial corporate

19.3

BNP Paribas SA

Financial corporate

8.7

GecinaFinancial corporate

8.1

Largest French issuers of cumulative aligned sustainability bond volume

GovernmentBacked Entity
51%
Local Government 2%
Source: Climate Bonds Initiative

IssuerIssuer type

Agence Française de Développement (AFD)

Government-backed entity

16.3

Action Logement Services

Government-backed entity

8.1

Ile de France

Local government

5.6

Caisse des Depots et Consignations (CDC)

Government-backed entity

4.4

Ville de Paris

Local government

1.7

Sustainable Debt Market Summary H1 2024 Climate Bonds Initiative

USDbn

10

2024, French sovereign green bond volume hadreached EUR72.6bn (USD81.1bn) spread overfour deals. This enthusiasm for raising funds via
sustainable finance instruments at the sovereignlevel has achieved what Climate Bonds has long
believed to be one of the key benefits of issuing
sovereign GSS+ instruments i.e., a messaging
signal sent to corporates to deploy the GSS+ debt
market. GSS+ volume originating from France
increased from USD6.2bn in 2016 to US26.9bn in2017 with the largest spike of 739% coming fromnon-financial corporate issuers.

Largest French issuers of cumulative aligned social bond volume

Paris 2024
environmental credentials

Largest French issuers of cumulative aligned SLB volume

With such robust sustainable finance credentials,
it is no surprise that France’s environmental
objectives for the 2024 Paris Olympics weregroundbreaking. Paris 2024 has set newsustainability standards for global sporting eventswith the aim of reducing the environmental
impact while maximising social and economic
benefits. The organisers’ intention was to deliver
an event that was more ‘responsible, sustainable,
and inclusive’.14
The Paris 2024 Olympic Games are the first to
be fully aligned with the Olympic Agenda 2020,
which is the International Olympic Committee’s(IOC) strategic roadmap to encourage thegames to be more sustainable, cost-effective,
and aligned with the needs of host cities andcommunities.15 The Olympic Agenda 2020 madeseveral recommendations, including the use ofexisting and temporary venues, reducing carbon
emissions, and promoting sustainable energy
sources.

Emissions reduction
The organisers set clear
environmental goals including anemissions reduction target of 50%
versus the London and Rio games,
supported by the decision to deploy existing
and temporary venues thereby minimising new
construction and the associated emissions.
New venues that have been constructed are
in response to local demand and will serve a
viable purpose long after the 2024 Olympics.
For example, the aquatics centre and the Paris2024 Olympic village have been built in thenorth-eastern suburbs of Paris, where some of
the city’s most under-invested neighbourhoods
are located.

EnergyParis 2024 will rely fully on
renewable energy which will be
locally sourced. All games venues
are connected to the grid, enablingthem to use renewable energy, significantly
reducing the carbon footprint. Solar panels
have been installed on the aquatics centre andthe Olympic village to harness solar energy.

IssuerIssuer type

USDbn

Caisse d'Amortissement de la Dette Sociale (CADES)

Government-backed entity

143.3

UNEDIC

Government-backed entity

39.3

BPCE SA

Financial corporate

6.0

Caisse Francaise de Financement Local (Caffil)

Government-backed entity

3.6

Credit Agricole SA

Financial corporate

3.6

IssuerIssuer type

Valeo SE

Non-financial corporate

1.9

L'Oreal SA

Non-financial corporate

1.4

Air France-KLM

Non-financial corporate

1.1

Atos SE

Non-financial corporate

0.9

Goldstory SAS

Non-financial corporate

0.9

Geothermal cooling systems are being used at
the Olympic village and the heat generated by
the Equinix PA10 data centre is being used toheat the Olympic aquatic centre.16

Food
The games will encouragesustainable food practices by
increasing the amount of plantbased food offerings, reducing
the amount of single-use plastic, and ensuring
access to free drinking water points for all
attendees. Noting the importance of increasing
the availability of non-animal protein sources,
Climate Bonds is developing Sector Criteria todetermine appropriate UoP for bonds supporting
alternative proteins.

Transport
As the host city of the 2024
Olympics, the Paris public transportsystem will be put to the test when
15 million spectators and 10,500
athletes vastly increase the number of daily
passengers.17 All Paris 2024 venues are accessible
by public transport and 80% of event venues
are within 10km of the Olympic village. A 37%
reduction in the Olympic fleet compared toprevious games has been targeted and the use ofelectric, hybrid, and hydrogen-powered vehicles
has been widely promoted.

Circular economy
Ahead of the games a second life
for over 90% of the equipment andgoods involved had been secured.18

Sustainable Debt Market Summary H1 2024 Climate Bonds Initiative

USDbn

Olympic fundraising efforts
In July 2024, the opening ceremony of the Paris
Olympics was a spectacular event, matching
France’s efforts in the sustainable financemarket. The sponsors and partners of theevent have leveraged the GSS+ bond market
to support their contribution to a sustainable
2024 Olympics. Additionally, reflecting theimpact of the enormous increase in visitors to
the city attending the Olympics, issuers from thetransport sector were active in the GSS+ bondmarket in H1 2024.

Société des Grands Projets
Instrument:
25-year, EUR1bn (USD1.1bn) green bond.
Use of proceeds:
Low-carbon transport.
In February 2024, the Sociétédes Grands Projets (formerly
Société du Grand Paris) priced
a EUR1bn, 25-year green bonddedicated to the financingof the Grand Paris Express,
a 200-km rapid passenger transport projectbuilt within the Paris region (Île-de-France) thatcomprises an extension to the existing lines andconstruction of new lines for the Paris Metro. The
extension of Line 14, one of the many metro lines,
was finished by June 2024 ahead of the Paris
Olympics. Upon the project’s full completion by
2030, the Grand Paris Express will considerably
extend the existing metro system and is expected
to serve up to three million passengers a day.
The Société des Grands Projets was the world’s
first issuer to adopt a EUR medium-term note

11

(EMTN) programme that issues only green bonds.19
The issuer adheres to the highest green bondstandards with all its bonds certified against the
Climate Bonds Standard under the Low-Carbon
Transport Criteria. Rolling stock that run on theplanned infrastructure will be fully electrified,exceeding Climate Bonds’ requirement of tailpipe
emissions up to 50gCO2e/p-km until the endof 2025 for land-based passenger transport
vehicles.20 Furthermore, projects financed by
the latest transaction also comply with both thesubstantial contribution criteria (SCC) and do no
significant harm (DNSH) components of the EU
Taxonomy’s technical screening criteria (TSC).21
Société des Grands Projets priced its first green
bond in 2018 and at the end of H1 2024 hadissued aligned GSS+ volume of EUR27.2bn(USD30.8bn). The maturity profile of its debt islong dated, extending to 2070.

Régie autonome des transports
Parisiens (RATP)
Instrument:
10-year, EUR500m (USD530m) green bond.
Use of proceeds:
Low-carbon transport.
RATP is a government-backed
entity that operates theParisien public transportsystems including the metro.
RATP came to the GSS+ market
in April with a EUR500m(USD530m) green bond. This is the first green
bond issued by the entity in almost five years. At
the end of H1 2024, RATP had priced three green
bonds amounting to an aligned green bondvolume of EUR1.5bn (USD1.7bn).
The proceeds of the most recent issue areearmarked to fund metro line upgrades,renovation of a railway maintenance centre, andmaintenance works on railway tracks of metroand regional express rail networks. RATP has
also confirmed that the targeted green projects
are aligned with the SCC component of the EU
Taxonomy’s TSC as they are dedicated to zeroemissions passenger transport vehicles.22

Société Nationale des Chemins de Fer
Français (SNCF) - supplier and supporterof the Paris Olympics 2024
Instrument:
10-year, EUR1bn (USD1.1bn) green bond.
Use of proceeds:
Low-carbon transport.
Looking beyond Paris, SNCF,
France’s state-owned railway
operator has been a regularissuer of Certified Climate
Bonds since 2016. At the end of

H1 2024, its Climate Bonds Certified green bondvolume had reached EUR12.8bn (USD13.5bn),including seven issues (both new bonds andreopenings) totalling USD1.5bn in H1 2024, thelargest of which was an EUR1bn (USD1.1bn) deal
priced in March 2024. The UoP are verified against
Climate Bonds Low-Carbon Transport Sector
Criteria and are earmarked for high-speed electricrolling stock and associated railway infrastructure.
According to the European Environment Agency(EEA), transport accounts for a quarter of the
EU’s GHG emissions.23 Scaling public passenger
transport with low or no tailpipe emissions andthe direct supporting infrastructure should be thefocus of decarbonisation efforts, for which thereis clear investor appetite to support.

Île-de-France Mobilités - official partnerof the Paris 2024 Olympics
Instrument:
25-year, EUR1bn (USD1.1bn) green bond.
Use of proceeds:
Low-carbon transport.
Île-de-France, a local
government entity dedicatedto looking after the Paris region
and the most populous inFrance, together with Île-deFrance Mobilités, the public
transport authority responsible for organisingpublic transport in the Île-de-France region, areboth intrinsic to the smooth running of the 2024
Olympics ensuring that the needs of all involved
are catered for and ease of movement around theFrench capital. In H1 2024, they priced aligned
GSS+ deals with combined volume of USD1.96bn.
Île-de-France Mobilités has around EUR2.5bn ofprojects eligible for green bond financing annuallyand intends to raise EUR1-1.5bn from green
bonds each year, with the balance of its borrowing
through private placements, bank finance, and EIB
funding. The use of proceeds for its GSS+ bonds
include renovation and renewal of surface andrail public transport rolling stock, infrastructure
enabling low-carbon public transport, andimproving the mobility quality of service.
Since 2012, Île-de-France Mobilités and Île-deFrance have issued 22 green and sustainability
labelled aligned GSS+ bonds amounting to
USD13.5bn, 12 of which were issued by Île-deFrance and ten by Île-de-France Mobilités. The Îlede-France region surrounds the nation’s capitaland is committed to covering its financing needs
via green and sustainable bonds. Currently, 85%of the region’s debt derives from green funding
this should account for all its debt by 2027/28.
Île-de-France Mobilités designs, organises, andfinances transport for everyone in the Île-deFrance region, so its status as official partner of
the Paris 2024 Olympics came as no surprise. Îlede-France Mobilités is committed to promoting

Sustainable Debt Market Summary H1 2024 Climate Bonds Initiative

the most environmentally friendly travel
solutions, with the aim of improving the region’s
air quality and the health of its residents.24

Group BPCE – a premium partner of theParis Olympics 2024
Instrument: BPCE SFH SA – 10-year, EUR1.5bn(USD1.6bn) green bond; BPCE SA – 12-year,
EUR500m (USD542.6m)social bond.
Green use of proceeds: Renewable energy,
green buildings, sustainable agriculture, lowcarbon transport.
Social use of proceeds: Social housing, local
economic development, healthcare, sporteconomy, and education.
Groupe BPCE is the second
largest banking group in
France. BPCE SA and BPCE SFH
SA both issued GSS+ bondsin H1 2024, one green andone social together totalling
USD2.1bn. BPCE SA, together with BPCE SFH SA
and BPCE Home Loans, has issued 19 aligned
GSS+ bonds, nine of which are labelled green andten of which are labelled social, with a combined
volume of USD16.2bn.
In its capacity as a premium partner of the Paris
Olympics 2024, Groupe BPCE and its groupcompanies play a central role at the heart ofthe sports economy which aligns well with the
UoP on its recent social deal. Within its social
funding framework, Groupe BPCE states that it
is committed to the sport economy and prides
itself on being a premium partner of the Paris 2024
Olympics recognising ‘the growing contribution ofsport to the realisation of development and peacein its promotion of tolerance and respect andthe contributions it makes to the empowermentof women, youth, and communities as well as
to individuals through health and well-being,education, and social inclusion and cohesion.’25
BPCE has identified an opportunity to support theParis Olympics 2024 via raising funds in the GSS+
market but also the potential to reach beyond the2024 Olympics, ensuring that the facilities funded
will be accessible to the general public after the
event, and reinforcing the beneficial potential andimpact of the GSS+ market.

Air Liquide – supplier and supporter of theParis Olympics 2024
Instrument: 10-year, EUR500m (USD540m)
green bond.
Use of proceeds: Low-carbonhydrogen, carbon capture, andlow-carbon air gases.
As noted above, Air Liquide
was one of the first issuers toprice a GSS+ deal, and more specifically the first12French corporate, issuing its first social bondin 2012. Since 2012, Air Liquide has issued twoaligned GSS+ bonds, one green and one social
bond, together totalling USD1.2bn. Air Liquide
is a world leader in gases, technologies, andservices for industry and health. Air Liquide‘smost recent green bond, which priced in May
2024, is in keeping with its ambition to combine
growth and sustainable development.
Air Liquide is the official hydrogen supporterof Paris 2024. ‘In line with the environmental
ambition of the event, Air Liquide and theorganising committee for the Paris 2024 Olympic
and Paralympic games have extended theiragreement on hydrogen fuelling for the eventto also cover the needs associated with theelectro-hydrogen generators that are installedat the Versailles and Saint-Quentin-en-Yvelines
competition venues. As with the vehicles in
the official fleet, the hydrogen supplied will beof renewable origin, i.e., produced from waterelectrolysis or biomethane with guarantees oforigin.’26 It was estimated that over the summer
months more than 22 tonnes of hydrogen would
be supplied to the Paris stations.

France leads on sustainablefinance policy
The lighting of Paris 2024’s Olympic cauldron
reflected on both France’s past and future forinnovation. Its shape was a reminder of the hot
air balloon invented by the French Montgolfierbrothers and its flame a new technique basedon electricity, LED lights, and water vapour,developed in collaboration with Electricite deFrance (EDF).27 An Olympic flame without fossil
fuel combustion reflects the country’s broader
green agenda which has been underpinned
by strong sustainable finance policies. Climate
Bonds highlights three examples:
1. Renewable energy push. The flying
flame synthesises France’s objective to rapidly
increase the share of renewable energy in its
energy mix through ambitious multi-annual
policy planning combined with high industrial
policy investment. France’s existing energy mix
already has a low-carbon intensity due to its
extensive nuclear fleet, but France is planningto further increase its energy production fromrenewables.28 This relies on a combination ofrobust policy planning and investment planning
through its France 2030 national investment
plan (from ten objectives, four focus on
decarbonisation of industry and transport).29
France has been mobilising its fiscal capacity to put
the means behind its policy objectives. France’s
share of industrial policy-related expenditureis higher than the OECD’s industrial strategy
benchmark. It is also focused on two sectors: energy(spending at 0.37% GDP, with a focus on supportingstrong demand of renewable energy, throughpurchase contracts) and manufacturing (spending

at 0.27% GDP, with a focus on supporting electricityintensive manufacturing to electricity purchasing
support).30 In addition, a significant proportionof industrial policy expenditure is dedicated tosupporting the development of micro-, small andmedium enterprises (MSMEs). This is done throughBPI France, whose mandate has been adapted toreflect the transition to net zero, and is financing
activities via a green bond programme as a key
instrument of the transition.31,32

Electricite de France
EDF has deployed thegreen bond market since2013, when it priced an
EUR1.4bn (USD1.9bn)
8-year deal with UoPearmarked to support
renewable energy assets in wind, solar, andbiogas. By the end of H1 2024, it had issued
cumulative aligned green bond volume of
USD20.3bn in a mixture of CHF, EUR, JPY
and USD, plus a EUR1.3bn (USD1.5bn) social
deal priced in 2021. EDF was the second
largest source of non-sovereign aligned
green volume in H1 2024, with three bonds
amounting to EUR3.0bn (USD3.2bn) withproceeds earmarked to support a variety of
low carbon energy initiatives, and a EU10
R5.8bn (USD6.8bn) green loan to financenuclear energy.

2. Climate transparency of fiscal
expenditures. In 2020, France was the firstgovernment to establish green budget tagging
practices, under a 2019 legal framework, with across-ministerial effort on reporting and using amethodology aligned with the EU Taxonomy.33
The reports provide detailed information on theimpact of French fiscal expenditure. A high-levelsummary provides a breakdown of expenditures
according to three categories:

3. Central bank focus. It takes a dream team
to aim for green, and Banque de France (BdF)
has been a central player for Team France. As afounding member of the Network for Greening
the Financial System (NGFS), the BdF has ataken a proactive approach to understanding
its mandate in the light of the transition and a
rapidly changing economy. Its actions range fromambitious climate stress-testing to the alignmentof its proprietary, non-monetary, portfolios witha 1.5°C target and the exclusion of fossil fuel.37
Accordingly, BdF is on top of the podium of the2022 Green Central Banking Scorecard.38
While central banks are independent fromgovernment, they are key policymakers intransition. As part of a broader landscape ofchangemakers, central banks and regulators havean opportunity to promote sustainability andensure credibility and soundness of sustainablefinance markets and investments. In doing so,
central banks play an incredibly important role intilting the playing field towards green.
The Banque de France has been pivotal inprogressing the thinking of the role of central
banks in transition and continues to do so,among others by being a proactive member ofthe Eurosystem and progressing its researchwork. Some of the BdF’s latest research provides
helpful clarification on topics such as double
materiality, exploring rationales for double
materiality and how each one has potential
implications for monetary and financial policies,
as well as possible theoretical and practicalchallenges.39 This a further example of BdF
pushing for more and smarter thinking by central
banks on the transition.

1. Favourable to the environment(EUR33.9bn in 2023).
2. Neutral impact on the environment(EUR2.3bn).
3. Unfavourable to the environment(EUR19.6bn in 2023).34
In addition, all details and methodologies are
publicly available on a dedicated web portal.35
Green budget-tagging demonstrates acommitment to climate transparency, embeds
environmental awareness across government,
and identifies expenditures for sovereign green
bond programmes. This transparency also
provides a model to French business. France was
the first country to introduce mandatory climaterelated disclosures in 2015, and in 2021 extended
these requirements to include biodiversity.36

Sustainable Debt Market Summary H1 2024 Climate Bonds Initiative13

Endnotes
1. Total market numbers from Bloomberg. Total deals with a tenor ofat least one year on issue date.
2. European union green bond UoP: https://ec.europa.eu/
commission/presscorner/detail/en/IP_22_2271
3. World bank Sustainability framework: https://thedocs.worldbank.
org/en/doc/43b360bfda1e6e5b8a094ef2ce4dff2a-0340012021/
original/World-Bank-IBRD-Sustainable-Development-BondFramework.pdf
4. Green Bond Framework, Australian Government December 2023,
Green Bond Framework (aofm.gov.au)
5. Global Gender Gap 2024 Insight Report, World Economic Forum
June 2024, WEF_GGGR_2024.pdf (weforum.org)
6. Sovereign Sustainable Financing Framework, Government of
Iceland 2021, Iceland’s Sovereign Sustainable Financing Framework(stjornarradid.is)
7. www.mmsd.com
8. Water Infrastructure Criteria, Climate Bonds Initiative 2021, CBIWaterCriteria-03B.pdf (climatebonds.net)
9. Low Carbon Transport Criteria, Climate Bonds Initiative, 2020, Low
Carbon Transport | Climate Bonds Initiative
10. G20 SFWG input paper: The role of policymakers in mobilising
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Prepared by Climate Bonds Initiative

Lead authors: Neeraj Chouhan, Caroline Harrison, Clodagh Muldoon
Contributing authors: Magali Van Coppernolle, Ang Gao, Matthew MacGeoch
Editorial Support: Stephanie Edghill
Design: Godfrey Design, Joel Milsteadwww.climatebonds.net
Climate Bonds Initiative © August 2024
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 H1 2024 Climate Bonds Initiative

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