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Debt vs. Climate: Are GSSS Bonds the Key to Financing Emerging Markets?
Climate adaptation is expensive! For many emerging markets, the price tag comes with an undesirable side effect: debt. Enter green bonds, a financial tool marketed as a win-win for climate resilience and economic development. As global capital markets are evolving, sustainability is central to business strategies rather than an afterthought. Emerging markets alone issued $135 billion in green bonds in 2023- a 34% increase from the previous year and projections suggest this could rise to 156 billion by 2025 in green, social, sustainability, and sustainability-linked (GSSS) bonds.