Recent years have witnessed a surge in sustainable bond markets, not only in terms of financing amounts but also in the form of innovative instruments. The expanding sustainable bond family now includes green bonds, social bonds, sustainability bonds, sustainability-linked bonds, and transition bonds. Following the International Capital Market Association (ICMA) launching of the first Green Bond Principles in 2015, annual global issuance of sustainable bonds surged from USD125.3 billion in 2016 to USD1,138.3 billion in 2021. Asia is home to the second-largest regional sustainable bond market in the world after Europe, accounting for around 20% of global issuance (Figure 1). The ASEAN+3 markets dominate the sustainable bond market in Asia with the equivalent of USD130.0 billion of sustainable bond issuance in the first 6 months of 2022 and USD547.9 billion of sustainable bonds outstanding at the end of June.