The green bond market is currently one of the fastest-growing
fixed-income segments, with issuances tripling between 2013 and
2014. There is a sense of excitement and optimism surrounding the
market – initially led and developed by the multilateral
development banks (MDBs) and international financial institutions
(IFIs), but now actively promoted, sponsored and supported by the
private sector.
However, an estimated US$65.9 billion worth of green bond
issuance taking place in 2015 is merely scratching the surface for
the potential growth in the green bond markets. If the target to
limit the increase of average global temperatures to well below 2
degrees Celsius – as envisaged in the Paris climate change
agreement – is to be met, it will only be possible with the
use of climate finance, raised predominantly from the private
sector, supporting the investments necessary to change the way in
which we currently source our energy.
