2015 was a bumper year for labelled green bonds market as it saw record issuance from existing and new issuers.
According to the Climate Bonds Initiative, a record $41.8 billion worth of labelled green bonds were issued across the world in 2015, an increase of 13% over 2014, and a huge jump over the total issuance in 2012, which was only $2.6 billion.
But perhaps the most encouraging trend seen in 2015 was the emergence of new markets.
While developed countries remained the leaders in the labelled green bonds market — the European Union recorded issuance of around $18 billion, while the US witnessed issuance of green bonds worth $10.5 billion — a number of entities in the developing world also issued green bonds. India and China emerged as potentially new major markets in the green bonds market; in India, four entities issued bonds worth $1.1 billion, while two entities in China issued $1 billion worth of green bonds.
The Climate Bonds Initiative had pushed for a total issuance of $100 billion in 2015, and had actively persuaded stakeholders across the world by conducting workshops. The agency will again push to achieve this target in 2016. Significant scope for expansion still remains as several emerging market are yet to see any action. Countries in South America and Africa can potentially see some action this year while other developing countries like India and China are expected to expand their green bonds market.