In this note, we expand upon our previous introduction of the Climate Contingent Convertible Bond, the CloCo, specifically focusing on developing a set of mechanisms for sovereign nations. A CloCo bond allows the issuer to convert the remaining value of the bond (or a portion of the outstanding value) to equity contingent on an acceleration (or deceleration) of climate policy. For the cases we consider for a sovereign state, we introduce the concept of the sovereign CloCo (S-CloCo) to provide a strategic national-level mechanism to enhance climate funding to ensure or accelerate climate transitions. Such a mechanism can be applied across the wide range of challenges posed by a changing climate, from enhanced adaption spending to improved low-emission industry and enhancing the natural environment. In particular, the instrument and mechanisms have been designed to assist in reducing public debt burdens and operate alongside privately issued CloCos as part of a nation’s strategy to meet its climate- (and nature-)linked goals. In this note, we introduce two S-CloCo mechanisms: (i) the sovereign influence mechanism designed to leverage opportunities from the private sector CloCo issuance utilising a sovereign wealth fund (SWF) and (ii) the direct SWF mechanism that is underwritten by equity holdings in a nations sovereign wealth fund. Within the influence mechanism, sovereign nations would actively encourage the issuance of private CloCos as part of a coordinated strategy with the firms and private asset managers along- side creating and utilising existing tax-efficient structures and government subsidies to enhance domestic investments. Within the sovereign wealth fund mechanism, governments would utilise their SWF holding as a source of underlying equity, whereby on the conversion of the S-CloCo stock from the fund is used to pay to investors. In such a mechanism, governments are able to remove the bond liability from their balance sheets and rebalance sovereign wealth fund holdings. The creation of such a mechanisms provides a direct means for governments to accelerate their climate transitions, limit sovereign funding costs and provide an enhanced structure for both domestic and foreign investment.