Green finance growth: More than 100 times in 10 years
Feb 27, 2024 5:08:47 GMT -5
Post by account_disabled on Feb 27, 2024 5:08:47 GMT -5
A study by TheCityUK, with the support of BNP Paribas, has revealed that the growth of green finance in the global market has gone from 5.2 billion dollars in 2012 to more than 540,000 by 2021. However, the report Green finance: a quantitative assessment of market trends , which uses data provided by Refinitiv, states that the share is just over 4% globally.
In this sense, according to edie , green Chinese American Phone Number List bonds represent the majority of financing, with an increase from 2.3 billion dollars in 2012 to 511.5 billion dollars in 2021, the accumulated issuance amounted to 1.4 trillion, which represents 93.1% of investment of this type throughout the decade.
a seedbed
On the other hand, green loans have gone from $342 million in 2017 to more than $78 billion in 2021, which represents an increase of almost 200 times in just four years.
The research revealed that China and the United States account for the majority of green bond demand, at 13.6% and 11.6% respectively. Given this, Anjalika Bardalai, chief economist and head of research at TheCityUK, points out that:
For many years, green finance has been like a seedling, much appreciated and cared for, but it cannot compete with the old and resistant plants of the financial markets.
Anjalika Bardalai, Chief Economist and Head of Research at TheCityUK.
Green finance growth: More than 100 times in 10 years
It also highlights that, "although the limitations of the definition mean that not all green finance activity is currently captured in the data, it is still important to try to compare it, and it is clear that, even taking into account the limitations of the data "Green finance flows are a small fraction of flows in broader financial markets," but there has been growth in green finance.
Spotlight on the growth of green finance
TheCityUK study believes the UK is “well placed to take advantage of this growth” as long as the market is supported by government and regulators. In that nation, the issuance of green bonds increased from $1.1 billion in 2012 to $37.4 billion by 2021.
Green finance growth: More than 100 times in 10 years
More than 20 sovereign green bonds were issued last year, this package was first confirmed by Chancellor Rishi Sunak in November 2020 and subsequently in the 2021 Budget speech. The Treasury then set the price of the bonds. green gilts at £15bn.
The UK launched its first green bond in September last year. Reuters reported orders worth 90 billion pounds, a figure that surpasses all previous records for debt sales by the British government or any of the devolved administrations.
Authorities have since confirmed that £10bn has been raised through the sale.
In addition, it secured the second sale of green bonds, raising 6,000 million pounds to finance ecological projects and to date a total of 16,000 million pounds has been obtained for initiatives such as zero- emission buses , offshore wind energy and housing decarbonization plans and buildings.
The UK has seen a rise in climate-aligned capital, and London is a global powerhouse when it comes to industry expertise, innovation and policymaking.
The government's 2050 net zero target has created a constructive environment for businesses to commit to the transition, and the recent TCFD mandatory reporting and transition plans will provide further fuel for finance to support businesses, investors and stakeholders across the economy in financing the net zero transition.
Anne Marie Verstraeten, director of BNP Paribas in the United Kingdom.
Finally, it should be noted that in early 2022, Climate Bonds Market Intelligence research found that 2021 marked the highest annual figure for green finance since the market's inception. In total, investors issued more than $517 billion in green bonds.
In fact, the green bond market grew by more than $500 billion in 2021, and investor demand for social and sustainability-linked bonds contributed to the green issuance market surpassing $1.5 trillion worldwide.
In this sense, according to edie , green Chinese American Phone Number List bonds represent the majority of financing, with an increase from 2.3 billion dollars in 2012 to 511.5 billion dollars in 2021, the accumulated issuance amounted to 1.4 trillion, which represents 93.1% of investment of this type throughout the decade.
a seedbed
On the other hand, green loans have gone from $342 million in 2017 to more than $78 billion in 2021, which represents an increase of almost 200 times in just four years.
The research revealed that China and the United States account for the majority of green bond demand, at 13.6% and 11.6% respectively. Given this, Anjalika Bardalai, chief economist and head of research at TheCityUK, points out that:
For many years, green finance has been like a seedling, much appreciated and cared for, but it cannot compete with the old and resistant plants of the financial markets.
Anjalika Bardalai, Chief Economist and Head of Research at TheCityUK.
Green finance growth: More than 100 times in 10 years
It also highlights that, "although the limitations of the definition mean that not all green finance activity is currently captured in the data, it is still important to try to compare it, and it is clear that, even taking into account the limitations of the data "Green finance flows are a small fraction of flows in broader financial markets," but there has been growth in green finance.
Spotlight on the growth of green finance
TheCityUK study believes the UK is “well placed to take advantage of this growth” as long as the market is supported by government and regulators. In that nation, the issuance of green bonds increased from $1.1 billion in 2012 to $37.4 billion by 2021.
Green finance growth: More than 100 times in 10 years
More than 20 sovereign green bonds were issued last year, this package was first confirmed by Chancellor Rishi Sunak in November 2020 and subsequently in the 2021 Budget speech. The Treasury then set the price of the bonds. green gilts at £15bn.
The UK launched its first green bond in September last year. Reuters reported orders worth 90 billion pounds, a figure that surpasses all previous records for debt sales by the British government or any of the devolved administrations.
Authorities have since confirmed that £10bn has been raised through the sale.
In addition, it secured the second sale of green bonds, raising 6,000 million pounds to finance ecological projects and to date a total of 16,000 million pounds has been obtained for initiatives such as zero- emission buses , offshore wind energy and housing decarbonization plans and buildings.
The UK has seen a rise in climate-aligned capital, and London is a global powerhouse when it comes to industry expertise, innovation and policymaking.
The government's 2050 net zero target has created a constructive environment for businesses to commit to the transition, and the recent TCFD mandatory reporting and transition plans will provide further fuel for finance to support businesses, investors and stakeholders across the economy in financing the net zero transition.
Anne Marie Verstraeten, director of BNP Paribas in the United Kingdom.
Finally, it should be noted that in early 2022, Climate Bonds Market Intelligence research found that 2021 marked the highest annual figure for green finance since the market's inception. In total, investors issued more than $517 billion in green bonds.
In fact, the green bond market grew by more than $500 billion in 2021, and investor demand for social and sustainability-linked bonds contributed to the green issuance market surpassing $1.5 trillion worldwide.