A new report by Climate Bonds Initiative has foundthat in 2019, green bonds issuance hit a record $255 billion. Global green bondand loan issuance climbed by 49% last year to a record high of $249.5 billion,analysis by Climate Bonds Initiative found. Of this total, 2.6% were greenloans.
The report breaks the bonds down, categorising them in tocountries. The data shows the largest international green bond market was the EuropeanUnion with $106.7 billion of annual issuance. The USA tops national rankingswith $50.6 billion, China at $30.1 billion and France the third largest greenissuing nation at $29.5 billion. Sean Kidney, CEO at Climate Bonds Initiative, said: “The 2019 resultsand 2020 estimates bring the vital international milestone of $1trillion inannual green investment by 2021/2022 into sight. Acceleration into trillions ofannual investments to support transition, adaptation and resilience must becomethe hallmark of the new decade.” The report then brokethe data down into how the investment was utilised. Clean energy dominatedoverall Use of Proceeds at 31.5%, followed by low carbon buildings on 29.3%,low carbon transport 20.2%, water 9.3%, with land use and waste both at 3.5%.
Climate Bonds Initiative is an international organisation working solely to mobilize the largest capitalmarket of all, the $100 trillion bond market, for climate change solutions.They revealed that Climate Bonds Certified bonds/loans for the year reached newrecord ($39.3 billion) of volume, reflecting an acceleration of green issuersdemonstrating international market best practice. Climate Bonds' new forecastfor 2020 is $350-400 billion in global annual green bond/loan issuance. SeanKidney added: “The vital $1trillion in annual greeninvestment is coming into sight.”