Global green bond issuance reached milestone peak in 2020
Global green bond issuance touched a historic high of $269.5 billion by the end of last year. More so, it is expected to hit a new record peak of around $400-$450 billion in 2021, a report released by the Climate Bonds Initiative (CBI) showed on Monday.
Considered as fixed-income securities, green bonds are dedicated to environmentally-relevant projects such as renewable energy and low-carbon transport. The figure seen in 2020 came higher than 2019’s record of $266.5 billion. This was mainly from a slowdown in issuance as the coronavirus drag pressed during the second quarter.
U.S. President Joe Biden’s plan of listing the country back under the International Paris Agreement, together with investors and policymakers’ goal of decarbonizing industrial sectors, came as one of the supporting factors for green bond issuance this year.