One of the world’s largest banks, Barclays, is set to invest a minimum of £1 billion in green bonds over the next year, more than doubling its current portfolio of £430 million.
The investment is one of the largest such investments by a bank, proving the importance of green bonds and helping to continue their impressive growth. According to Bloomberg, the current rate of growth will see green bonds — fixed income securities designed to raise capital to finance the low carbon environment — surpass £40 billion in 2014, three times the size of the market in 2013.
“Every so often, market innovation and social imperatives come together to create something exciting that has the potential to make a real difference. The Green Bond sector is a fast-growing and powerful example of this synthesis,” said Tushar Morzaria, Barclays Group Finance Director.
Barclays intends to focus on supra-national organizations and government issued bonds, a segment of the market which accounts for over $7 billion of green bonds in 2013. The bank intends to review their commitment to green bonds on an ongoing basis, “with the potential to increase it depending on overall growth of the sector.”
“The participation of strategic investors such as Barclays in the Green Bond market will continue to bring scale and diversity to the market and help mobilize more capital for climate-friendly projects,” said Madelyn Antoncic, Vice-President and Treasurer of the World Bank. “Commitments on the part of banks such as Barclays will have a hugely positive impact on the growth of the market – especially if similar investors follow.”
The green bonds market is set to continue to grow, and significant investments such as this will only serve to increase the market’s attractiveness to other investors.
I don't like paywalls. You don't like paywalls. Who likes paywalls? Here at CleanTechnica, we implemented a limited paywall for a while, but it always felt wrong — and it was always tough to decide what we should put behind there. In theory, your most exclusive and best content goes behind a paywall. But then fewer people read it! We just don't like paywalls, and so we've decided to ditch ours. Unfortunately, the media business is still a tough, cut-throat business with tiny margins. It's a never-ending Olympic challenge to stay above water or even perhaps — gasp — grow. So ...
Sign up for daily news updates from CleanTechnica on email. Or follow us on Google News!
Have a tip for CleanTechnica, want to advertise, or want to suggest a guest for our CleanTech Talk podcast? Contact us here.