Climate Action

Green bonds reach $100 billion milestone

The latest Climate Bonds Initiative analysis has shown that green bond issuances in 2017 have reached the significant $100 billion benchmark.

  • 24 November 2017
  • Websolutions

The latest Climate Bonds Initiative analysis has shown that green bond issuances in 2017 have reached the significant $100 billion benchmark.

More specifically, issuances reached $101.4 billion on 16 November, when the China Development Bank issued a $1.5 billion green.

As the organisation states, the milestone was reached due to several global banks creating a momentum for green bonds.

The Commercial Bank of China (ICBC) issued its inaugural climate bond of $2.1 billion this October, to be invested in renewable energy, low carbon transportation, energy efficiency and sustainable water management.

At the same time, France became the second nation to issue a sovereign green bond to borrow €7 billion to fund its energy transition plan, followed by Fiji which was the first emerging economy to ever issue a sovereign green bond.

According to Climate Bonds Initiative, the top  countries for 2017 are China, with more than $16 billion green bonds issued, France with $15 billion, and the US with approximately $14 billion in green bonds.

Christiana Figueres, former UN Climate Chief showed excitement about the news;  she said: “Passing $100bn in green bond issuance shows we are moving capital flows in the right direction”.

“The priority is to accelerate green finance and climate investment between now and 2020 at a scale never seen before”.

She called for a “systematic response” from the global finance sector for the $1 trillion in green finance by 2020 to be met.

“Asset owners and managers need to adjust their capital allocations. Banks and corporates need to commence large-scale green bond programs”.

Sean Kidney, Climate Bond Initiative CEO, commented: “We are looking for other nations to follow the lead of Poland, France, and Fiji on the sovereign issuance path. Nigeria is set to issue Africa’s first sovereign green bond”.

“Now is the time for G20 and OECD countries to act and signal their intentions into 2018”.