Corporate green bonds to surpass $30bn in 2015, says S&P
A record $30bn of 'green bonds' could be issued by private companies this year, helping to finance a growing number of environmental and sustainability projects around the world.
Ratings agency Standard and Poor’s made the prediction on Monday, adding that much of the growth would be driven by China’s attempt to tackle its pollution problem.
Companies issued $18bn worth of green bonds in 2014, tripling the record set in 2013.
The bonds are mainly issued by development banks and corporates, such as utilities and real estate companies, to help fund renewable energy schemes and efficiency upgrades, amongst other things.
S&P said in a statement: “We expect green bond issuance to remain relatively buoyant given investor appetite for green products as well as issuers taking advantage of the exceptional demand.”
“The surge in green bond sales represents growing demand among investors for green investments amid concerns about climate change.”
S&P said that the steep decline in global oil prices should not hamper interest in green bonds, but the market needs to establish commonly-agreed standards and encourage more transparency to ensure continued growth.
China will reportedly be the most fertile market for green bonds as the Chinese government tackles pollution and could reportedly encourage companies to raise funds by bond issuance.
In recognition of the vast potential of the Chinese market, the Climate Bonds Inititative – a bond market specialist – is lauching a how-to guide on issuing green bonds in China on Tuesday.
In November last year Scottish Renewables called on the UK Government to launch a green bond alongside exisiting private offerings to encourage investment in renewable projects.
Funding sustainability at Sustainability Live 2015
The Green Investment Bank’s head of sustainable finance Gavin Templeton will feature among an expert panel discussing funding sustainability at our brand new high-level Conference at Sustainability Live 2015 in April. The panel will explore how to get access to funding and the types of funding available – public and private.
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