Green bonds aim at financing environmental projects that can vary from energy efficiency to pollution prevention, from clean transportation to the development of environmentally friendly technologies or ecosystems preservation.
In order for a bond to be “green”, the project financed by its issuance need to be in line with the Climate Bond Taxonomy, aiming at reducing CO2 emissions.
2 international systems ensure the market transparency and integrity: Green Bond Principles and Climate Bonds Standard. Both systems define the criteria for the certification of a bond as “green”.
Green bonds are a fast expanding sector promoting climate and sustainable financial solutions, forecast to reach $185bn issuance in 2018, a growth of around 20 per cent on 2017 levels.
The sector experienced a huge growth, considering that the amount issued in 2012 was only about 2.6 billion $.
The green bond market hit a growth record last year, reaching a 20% increase versus 2017 levels. Forecasts from SEB, a leading Nordic corporate bank, report, that appeared in an article on BusinessGreen, indicate a possible new record in 2018.
Summer 2018 showed a slow down in the trend, but analysts say that reflected the global bond market situation, and not the specific alternative investments sector.
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