An increasing number of governments are issuing green sovereign bonds for the first time. Some of these issuers are triple-A rated or represent reserve-currency jurisdictions, which offer central banks a safer way to enhance the green credentials of their assets without compromising safety.

The major increase in public spending by governments introduced to tackle the Covid-19 pandemic in 2020–21 has contributed to this phenomenon. For instance, by May 2021, up to 19 jurisdictions had jointly