Connect with us

Hi, what are you looking for?


Green Economy

Global Green Bonds Likely A Trillion Dollar Market After 2020, Says Citi

Citigroup expects the global green bonds market to balloon into a trillion-dollar behemoth by the next decade.

ecologyVector-002Citigroup banker Michael Eckhart recently told media outlets that the global green bonds market could see an exponential growth, taking its value to $1 trillion after 2020. The growth is expected to pick up swiftly once a global framework on investment guidelines and reporting are agreed upon over the next couple of years.

The exponential growth Eckhart stated may come from developing economies like China and India, which probably have the most ambitious renewable energy targets in the world. Both the countries have only recently entered the green bonds market and plan massive expansion through new bond issues.

Both the Chinese and Indian governments have directed public sector companies to issue green bonds worth billions of dollars. Last year, China’s central bank set quotas for several companies to issue a total of $45 billion green bonds. Earlier this year, the Indian government announced that public sector companies would soon raise $1 billion through green bonds.

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.

The labelled green bonds market already had its best quarter ever in Q1 2016, when $16.9 billion worth of bonds were issued. China had an overwhelming share in this issuance. With $7.9 billion raised, China overtook the United States as the largest player in the green bonds market.

While the Climate Bonds Initiative hopes to push this year’s total issuance to $100 billion, research firm Moody’s estimate looks more realistic at $70 billion, while Bloomberg New Energy Finance has put its estimates at a much more conservative $56 billion.

Image by for Planetsave

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.

Former Tesla Battery Expert Leading Lyten Into New Lithium-Sulfur Battery Era — Podcast:

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 ...
If you like what we do and want to support us, please chip in a bit monthly via PayPal or Patreon to help our team do what we do! Thank you!
Written By

An avid follower of latest developments in the Indian renewable energy sector.


You May Also Like

Green Economy

Some of the leading global pension funds are vying for a stake in the latest renewable energy yieldco offering in India. According to media...

Green Economy

Global investment firm KKR has participated in the second fundraising exercise in sixth months for India-based Serentica Renewables. According to media reports, KKR has...

Green Economy

The Indian renewable energy company Avaada has secured a massive $1.07 billion from multiple investors, including Brookfield.  According to media reports, Brookfield Renewable, part...

Clean Power

GAIL India, a government-owned natural gas distribution company, has announced plans to enter the solar module manufacturing sector. GAIL, formerly Gas Authority of India...

Copyright © 2023 CleanTechnica. The content produced by this site is for entertainment purposes only. Opinions and comments published on this site may not be sanctioned by and do not necessarily represent the views of CleanTechnica, its owners, sponsors, affiliates, or subsidiaries.