What’s next for the Green Bond Pledge?
We will be seeking commitments over the next few months in the lead-up to the Global Climate Action Summit (GCAS) to be held in San Francisco September 12-14. We expect to highlight the early-adopters of the pledge and launch a broader effort to expand the use of green bonds for infrastructure projects.
Is there anything the investor community can do to support the green bond efforts?
Yes! There is a parallel effort to the green bond pledge being coordinated by Ceres. They are seeking support for an "Investor Statement of Support for Low Carbon Investment." Read a copy of the statement.
How big is the Green Bond Market?
The green bond market has seen strong growth, with the market really starting to take off in 2014 when USD 37 billion was issued; over three times the 2013 issuance (USD 11 billion). In 2017 issuance was over USD 155 billion, setting yet another record. Current green bond issuance data is at https://www.climatebonds.net/
When Did the Green Bond Market Start?
The green bond market kicked off in 2007 with the AAA-rated issuance from multilateral institutions European Investment Bank (EIB) and World Bank. The wider bond market started to react after the first USD 1 billion green bond sold within an hour of issue by IFC in March 2013. The following November there was a turning point in the market as the first corporate green bond issued by Vasakronan, a Swedish property company. Large corporate issuers include SNCF, Berlin Hyp, Apple, Engie, ICBC, and Credit Agricole.
When did the Green Muni Market Start?
The first green muni bond was issued by Massachusetts in June 2013. Gothenburg issued the first Green City bond in October 2013. US states are major green bond issuers, but issuers also include Province of Ontario, City of Johannesburg, and Province of la Rioja (Argentina). Local government green bonds continue to grow.
Are there Green Asset Backed Securities?
SolarCity (now Tesla Energy) issued the first solar “Asset Backed Security” (ABS) in November 2013. The biggest ABS issuer is Fannie Mae. ABS includes solar ABS, green MBS, green RMBS, green CMBS, PACE ABS, auto ABS and receivables ABS - so far.
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