The green bond market continued to see strong growth in the third quarter of 2014 and will reach $100 billion (£62bn) next year, according to the Climate Bonds Initiative.
Blue & Green Tomorrow is currently running a crowdfunder to ensure its survival. Please pledge.
Green bonds work in the same way as traditional bonds, with regular interest payments paid over a defined period of time. The green bond market encompasses many different areas from renewable energy to solutions to environmental degradation.
According to the Climate Bonds Initiative’s Green Bonds Underwriters League Table, some $9.2 billion (£5.7bn) of green bonds were issued during the third quarter of 2014. The latest figures take the total green climate bonds issued during 2014 to $32 billon (£19.9), the biggest year yet.
- World First Bond To Protect Forests And Deepen Carbon-Credit Markets Welcomed By London Stock Exchange
- NTPC To Lead On Brown To Green Bond Financing
- BoC Lists A Green Bond On The Luxembourg Stock Exchange (LuxSE) As First Chinese Bank To Do So
- Climate Bonds Initiative Publishes Annual Report
- Farm-Scale Wind Farms Set for Scotland and Wales
Climate Bonds Initiative CEO Sean Kidney said, “The league table shows that Crédit Agricole, BAML, and SEB were the main drivers of the growth of the ‘labelled’ markets in the last quarter that saw 28 green bonds issued. We predict $100 billion of issuance in 2015 and green bonds to go mainstream in 2016.”
A separate report published earlier this year found that the investment vehicle is entering the mainstream and becoming an increasingly popular choice with the market, now standing at an estimated $502.6 billion (£314bn).
Recently, investors managing assets over $2 trillion (£1.25tn) pledged their support to such climate change solutions, which could deliver the sector a sizeable boost.
At the top of the Green Bonds Underwriter League Table is Crédit Agricole, narrowly beating the Bank of America Marrill Lynch (BAML), with both banks involved in over $140 million (£87m) of deals during the third quarter.
Photo: Krappweis via Freeimages