In 2022, the World Bank issued the “rhino bond”, a first-of-its-kind, outcome-based issue to achieve conservation outcomes, in this case an increase in black rhino populations in South Africa. In February this year, the bank returned with an inaugural emission reduction-linked bond (ERLB) that aims to provide clean drinking water to children in Vietnam and may also help to scale up voluntary carbon markets.
Jorge Familiar, vice-president and treasurer of the World Bank, says the institution has been at the forefront of innovations related to sustainable development in capital markets. For example, the World Bank issued the first green bond in 2008, the origin of the principles and framework applied to a market that has grown to be worth $3.7tn. “Growth has been exponential and it is clear that investors are thinking more about impact and where their money is going,” says Mr Familiar. “I believe this opens the door to more innovation.”
