2017 Green Bond Issuance Passes $100 Billion
New Global Green Finance Record Comes at Peak of COP23
LONDON: 15/11/2017 19:00 GMT: The latest Climate Bonds Initiative analysis shows green bond issuance in 2017 passing the significant $100bn benchmark, setting a new global record.
Issuance will reach USD101.4bn via the China Development Bank with a USD1.5bn+ green bond due to settle tomorrow (16th November). This bond will take the Climate Bonds figure on labelled green issuance from today’s USD99.79bn total to well over the USD100bn. The new record comes just six weeks after 2017 issuance overtook the previous 2016 record of $81.6bn on 28th September.
Leading the Top 10 national green bond issuance for 2017 to date is China followed by France, the United States, Germany, Netherlands, Sweden, Mexico, Spain, India and Canada. European nations have maintained their representation in the top 10, with emerging economies of Mexico and India prominent, reflecting the growth in their green finance markets. Full details in Attachment.
Major green bond issuers in the leading nations include China (China Development Bank, Bank of Beijing and ICBC), France (Republic of France, Engie & SNCF), United States: (New York MTA, Fannie Mae and Apple INC). Full details in Attachment.
Among recent announcements, the world’s biggest public company and bank, the Industrial and Commercial Bank of China (ICBC) issuing their inaugural green bond followed by the China Development Bank on November 10th. The moves send a strong signal to other global banks to step up their green bond commitments.
The ICBC and CDB bonds have all been Certified by the Climate Bonds Initiative, a positive indicator that China’s largest banks are pursuing global best practice in labelled green bond issuance.
During 2017, France became the second nation to issue a sovereign green bond and Fiji has become the first emerging economy, Pacific Island nation and first from the Southern Hemisphere to issue a sovereign green bond. Nigeria is expected to become the first African nation to issue a sovereign green bond in coming weeks.
Climate Bonds estimates a final figure for 2017 of up to USD130bn in green bond issuance.
Christiana Figueres, former UN Climate Chief, Convenor of Mission 2020
“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.”
“A systemic response from global finance is required. Asset owners and managers need to adjust their capital allocations. Banks and corporates need to commence large scale green bond programs. Funding clean energy and green infrastructure to meet NDC goals is the objective. $1 trillion in green finance by 2020 is the performance measure.”
Nick Robins, Co-Director, UNEP Inquiry
“Green bonds are at the forefront of the wider shift to a sustainable financial system. Achieving the symbolic US$100bn milestone is a tangible sign that investors are willing to allocate capital at scale for climate action.”
“We now need to expand the asset pipeline of assets by working with banks on greening their core lending books and bringing in the policy frameworks that can enable the market to grow with integrity.”
Sean Kidney, CEO, Climate Bonds
“Issuers, sovereigns, sub sovereigns, banks and corporations should respond positively to the many investor calls since COP21 in Paris for quality, investable green product, and enter the market.”
“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.”
“Our forecast of $130 billion in green bonds for 2017 is coming closer, but there’s a long way to go to reach the 2020 green finance milestone.“