Green bonds

For the first time, green bonds issued in 2019 have reached the $100 billion mark during the first half of the year, says investor-focused non-profit Climate Bonds.

The new benchmark indicates strong growth in the sector, and has been welcomed by supporters.

In previous years, the $100 billion mark was reached later in the year. In 2017, the milestone was announced during November during COP23, and in 2018, by September.

The organisation says the anticipated impact of the European Union’s Technical Expert Group (TEG) on Sustainable Finance will help the sector reach the one trillion mark in the 2020’s.

Sean Kidney, CEO of Climate Bonds said: “Reaching $100 billion in green issuance for the third time and so early in the year is welcome, however, the global climate finance challenge is to reach $1 trillion in annual green investment early in the 2020s. The EU TEG process, in particular, the EU Taxonomy opens new pathways to achieve this critical climate investment goal.

“The common definitions that the EU Taxonomy provide across broad sectors of the real economy, opens the door to brown-to-green transition of corporate assets and capex programmes and for banks and insurance companies to sizeably increase the availability of green capital. It also provides pension funds with the increasing confidence of their role as long term supporters of the leaders in this economy wide shift towards zero carbon.”

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