Global Trust Fund on Sustainable Finance Instruments

In 2023, with ﬁnancial support from the Luxembourg government, GGGI established the Global Trust Fund (GTF), a four-year programme to accelerate the adoption of sustainable ﬁnancial instruments, including thematic bonds and debt-for-nature swaps, in developing countries. This program aims to improve sustainable ﬁnance in emerging economies by enhancing policy frameworks, strengthening national green ﬁnance ecosystems, and building the capacity of market participants. It facilitates the issuance of thematic bonds by providing key policy support, technical assistance, and guidance to beneﬁciaries from developing countries.

The GTF strengthens the national green finance ecosystems of at least 22 developing countries in Asia, Africa, and Latin America and the Caribbean, prioritized by the GTF Board. This is achieved through the development of 17 policy frameworks and the training of more than 1,700 sustainable finance experts across the public and private sectors. The Global Trust Fund provides pre- and post-issuance support, as well as credit enhancement, to potential issuers, resulting in 10 thematic bond issuances that have raised USD 2.2 billion toward nationally determined contributions (NDC) targets. Direct capital mobilization through the Trust Fund will help avoid 130 million tCO₂ emissions, strengthen the climate resilience of 2 million beneficiaries, and create 400,000 green jobs.