About
Global Trust Fund on Sustainable Finance Instruments

The Global Green Growth Institute (GGGI) supports developing and emerging economies in issuing thematic bonds to achieve sustainable economic growth. National and local governments, multilateral and national development banks, exchanges, and donors highly value GGGI’s expertise and seek its technical assistance to enhance their capacity and systems for mobilizing climate finance through thematic bond markets.

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.

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The GTF is a novel approach to closing the development financing gap by leveraging the potential of the capital market to promote climate change mitigation and adaptation by creating policy incentives and risk mitigation measures to direct bond proceeds into low-carbon projects and initiatives.

The GTF will strengthen the national green finance ecosystem of at least 10 developing countries in Asia, Africa, Latin America and the Caribbean prioritized by the GTF's Board through the development of policy frameworks in 6 countries and the training of 400 sustainable finance experts in the private and public sectors. The Trust Fund will provide pre- and post-issuance and credit enhancement support to up to 15 potential issuers expected to result in 10 thematic bond issuances that will raise USD 2 billion towards nationally determined contributions (NDC) targets. Direct capital mobilization through the Trust Fund is expected to help avoid 130 million tC02 emissions, improve the resilience of 2 million beneficiaries to climate change, and create 400,000 green jobs.

Main beneficiaries 

The main beneficiaries of GGGI’s technical assistance include national and subnational governments, national development banks, local financial institutions, and stock exchanges.

Donor

The main funder of the GGGI’s Global Thematic Bonds Program is the Government of Luxembourg.

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Partners

The implementing partners of the programme are the Luxembourg Stock Exchange, the Luxembourg Sustainable Finance Initiative, and the International Capital Market Association. Together we are shaping a more sustainable and prosperous future for developing countries.

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Program outputs:

The program will deliver demand-led technical assistance to issuers and regulators across regions with the following outcomes.

  1. Enhanced policy frameworks, leading to increased volume of thematic bond issuance.
    - Enhancing national green finance ecosystems in emerging economies.
  2. Enhanced capacity of public and private actors to enable them to participate in the thematic bond market.
    -Delivering capacity-building workshops, training over 400 public and private representatives, with a commitment to gender diversity (at least 50% of women).
  3. Thematic bond issuance for $2 billion
    -Supporting prospective issuers and completing at least 10 thematic bond issuances with a cumulative volume of $2 billion.
  4. Knowledge sharing at national, regional, and international levels.
    -Developing 5 or more valuable knowledge products for broader dissemination, organizing webinars and conferences to share the best practices
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