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BRIEFOctober 25, 2024

Amazonia Bonds Guidelines

The World Bank

The Guidelines are designed to ensure that projects and investments focus on local peoples, biodiversity conservation, and natural resources.

What are the Amazonia Bonds Guidelines?

The Amazonia Bond Investment Guidelines is a living document comprising a set of recommended guidelines for project selection and evaluation, measures to mitigate environmental and social risks, and relevant impact reporting metrics.

The Guidelines are aligned with the ICMA Principles for Green, Social and Sustainability bonds and seek to enable the issuance of Amazonia Bonds as a standardized and credible sub-label in the sustainable bond market.

The Guidelines are designed to ensure that projects and investments focus on local peoples, biodiversity conservation, and natural resources.

Frequently Asked Questions

 

What are Amazonia Bonds?

Amazonia Bonds are an innovative capital markets instrument focused on addressing the urgent need for sustainable development in Amazonia.

Amazonia Bonds are those bonds issued under frameworks aligned with the Amazonia Bonds Investment Guidelines.

The bonds are expected to connect public and private issuers with sustainability-focused investors looking to integrate Amazonian investments into their portfolios responsibly.

Why are Amazonia Bonds needed?

Amazonia Bonds are needed to address the financing gap in the Amazon and allow more funds to flow from investors into projects that have positive environmental and social benefits in the region.

Amazonia Bonds seek to support the transformation of the Amazon region’s economy from an extractive, frontier economy towards a sustainable economy that:

  • Generates employment and improves quality of life for Amazonian residents, particularly Indigenous Peoples and Local Communities
  • Reduces deforestation and values nature restoration, by supporting governance and innovative solutions.
  • Strengthens economic growth and scales socio-bioeconomy value chains based on the region’s social and natural capital.

What differentiates Amazonia Bonds from the other bonds?

Amazonia Bonds are a sub-label of Green, Social and Sustainability Bonds. Proceeds raised through the issuance of Amazonia bonds are expected to be earmarked for projects and activities that support the holistic, sustainable development of Amazonia.

The key objectives are social well-being, urban resilience, bioeconomy growth, sustainable land of use, and environmental governance.

Examples of eligible investments are education, urban infrastructure, agroforestry, nature-based solutions, and biodiversity restoration. The impact of Amazonia Bonds that follow the guidelines will be measured by KPIs specific to Amazonia.

An Inclusive participatory process

  • The World Bank
    June-October

    Preparation of Amazonia Bond Guidelines Core Elements

    1- Discuss value-added of Amazonia Bonds. 2- Develop criteria for eligibility, environmental & social risk management systems. 3- Receive feedback from potential issuers and civil society organizations.
  • The World Bank
    October

    COP16

    Awareness-raising Announce core components 1- Start initial dialogue with Indigenous Peoples leaders 2- Commit to participatory dialogue process with Indigenous Peoples and afro-descendants 3- COP16 Event
  • The World Bank
    November ‘24 – April ’25

    Participatory Dialogues

    Awareness raising, socialization, dialogue 1- Participative dialogue with Indigenous Peoples, and Afrodescendent communities 2- Continuous stakeholder feedback 3- Revision of Guidelines based on dialogues and feedback
  • The World Bank
    July ‘25-Dec ‘26

    Potential issuances

    1- Capacity building for potential issuers 2- Development of a tailor-made issuer strategies 3- Potential Issuance of Amazonia Bonds