Connect with us

Hi, what are you looking for?

CleanTechnica

Green Economy

Green Bonds Issuance Could Jump To $200 Billion This Year

After a record-breaking issuance last year, the international green bonds market is set for a new record this year.

After a record-breaking issuance last year, the international green bonds market is set for a new record this year.

According to TD Securities, the total issuance of green bonds this year would touch $160 billion. This would mark a 34% increase in issuance from TD Securities’ 2017 issuance estimate of $119 billion.

“The sector has experienced extremely strong growth over the past several years as funds with socially responsible mandates continued to chase scarce supply,” TD analyst Gennadiy Goldberg.

While the United States remains one of the largest markets in the green bonds market, the current administration has expressed its opposition to the Paris Agreement, yet the global issuance would continue to increase, analysts at TD Securities expect. Municipalities and cities led in green bond issuance last year. If even this trend declines, the European Union is expected to see continued growth, while China and India have lined up government-backed bonds.

Climate Bonds Initiative CEO Sean Kidney has a more optimistic view of this year’s issuance total. Kidney expects at least a 60% jump over last year’s issuance, taking the 2018 total to $200 billion. Kidney sees substantial growth in corporate green bonds as companies feel the pressure to transition to low-carbon operations.

The Climate Bonds Initiative reported $120.2 billion worth of green bonds issued in 2017, an increase of 48% over the previous year’s issuance. The tally does not include $10.2 billion worth of bonds issued by Chinese entities that do not fit the definition of green bonds given by Climate Bonds Initiative.

Confidence among investors would likely come from the large sovereign green bonds issues being planned by governments and government-owned entities. The governments of Poland, France, and Fiji issued green bonds last year, while Nigeria became the first African country to issue a sovereign green bond.


Appreciate CleanTechnica’s originality? Consider becoming a CleanTechnica Member, Supporter, Technician, or Ambassador — or a patron on Patreon.

 
 
Have a tip for CleanTechnica, want to advertise, or want to suggest a guest for our CleanTech Talk podcast? Contact us here.

Written By

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

Comments

#1 most loved electric vehicle, solar energy, and battery news & analysis site in the world.

 

Support our work today!

Advertisement

Power CleanTechnica: $3/Month

Tesla News Solar News EV News Data Reports

Advertisement

EV Sales Charts, Graphs, & Stats

Advertisement

Our Electric Car Driver Report

30 Electric Car Benefits

Tesla Model 3 Video

Renewable Energy 101 In Depth

solar power facts

Tesla News

EV Reviews

Home Efficiency

You May Also Like

Green Economy

One of India’s largest renewable energy companies has completed a fundraising exercise through the issuance of green bonds. Greenko Energy Holdings has announced that...

Climate Change

A green bond is a type of fixed-income instrument that is specifically earmarked to raise money for climate and environmental projects.

Green Economy

One of India’s leading renewable energy companies, Greenko Energy Holdings, has successfully issued yet another green bond, making it at least the fourth green...

Cars

A Japanese company successfully raised funds for the production of electric vehicle parts using green bonds. Meidensha Corporation (Meiden) recently secured funding worth US$55...

Copyright © 2021 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.