FEATURES OF THE DEVELOPMENT OF SUSTAINABLE FINANCING IN LATIN AMERICA

Abstract

The article provides a comprehensive analysis of the external determinants of the green bond market growth and sustainable finance development in Latin America using qualitative and quantitative methodologies. The study draws on an extensive body of statistical data from international organizations, covering macroeconomic indicators, climate risks, institutional factors, and parameters of the environmental regulatory environment. The methodological framework of the study includes two complementary approaches. PESTEL analysis allows for the systematization of political, economic, social, technological, environmental, and legal factors, identifying key drivers and barriers to the development of green finance. The author’s original composite index of sustainable finance provides a quantitative assessment and ranking of countries by their market development potential. The results of the PESTEL analysis demonstrate the heterogeneity of factors of sustainable development of Latin America countries. The implementation of the constructed composite index revealed significant differentiation among countries of the region: the leaders (Brazil, Mexico, Colombia, Chile) are characterized by a developed institutional environment, whereas the outsiders (countries of Central America and the Caribbean) exhibit critically low institutional indicators.