Global green bond issuance hit new record high

LONDON: Global green bond issuance reached a record high of US$269.5bil by the end of last year and could reach US$400-US$450bil this year, a report by the Climate Bonds Initiative (CBI) showed yesterday.

Green bonds are a growing category of fixed-income securities that raise capital for projects with environmental benefits, such as renewable energy or low-carbon transport.

Although issuance reached a new record in 2020, the figure was just above 2019’s total of US$266.5bil as issuance slowed in the second quarter due to the effects of the coronavirus crisis before rebounding in the third quarter.

“The impact of Covid-19 in 2020 proved a huge economic and social negative. In that context, the resilience of green finance markets led to a record year of issuance, ” the report said.

“2021 may enable a sustained resurgence, ” the CBI added.

The CBI is a London-based non-profit which promotes investment in the low-carbon economy.

Supporting factors for green bond issuance this year include US President Joe Biden’s intention to return the country to the international Paris Agreement to fight climate change and investors and policymakers’ growing focus on decarbonising industrial sectors.

The green bond market started up in 2007.

Although they make up a small fraction of the overall debt market, green bonds are attracting attention because the need to meet emissions-reduction targets will need trillions of dollars of capital from public and private sectors.

Last year, the United States issued the most green bonds, with a total value of US$51.1bil, followed by Germany at US$40.2bil and France at US$32.1bil, the report said.

The proceeds of green bonds were mainly aimed at energy sector investments, followed by low-carbon buildings and low-carbon transport, it added. — Reuters

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 1
Cxense type: free
User access status: 3

Next In Business News

CPO futures likely to trend higher next week
Asian LNG spot prices rise as China replenishes inventories
US stops short of branding Vietnam, Switzerland, Taiwan currency manipulators
Oil price down but secures weekly gain on recovery hopes
GLOBAL MARKETS-World stocks at new peaks on strong China, US data
Food for thought
Food inflation will continue to rise if efficiency is not addressed
Short position - AmBanks' placement, virtual AGMs, glove stocks
The question of MoUs materialising
Kerjaya’s prospects bright

Stories You'll Enjoy