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Global Green Bond Market: Past Performance and Future Prospects
New study by Makreo Research unveils insights on global green bond market, highlighting growth, regulations, and potential trillion-dollar issuance by 2023.
By: Makreo Research and Comsulting
The study highlights the significance of regulations and policies in framing the green bond market. Under the umbrella of the International Capital Markets Association (ICMA), The Green Bond Principles (GBP) have been established as a set of guiding principles. These principles encompass critical components such as use of proceeds, project evaluation and selection, management of funds, and reporting. Furthermore, countries have developed their own regulations to align with their specific needs and requirements.
One notable trend highlighted in the study is the surge of the Asia-Pacific (APAC) green bond market, positioning it as the second-largest player globally. Leading this market is China, which has maintained its position despite a decline in issuances in 2019. After consecutively issuing over USD 30 billion for four years, China's issuances fell to USD 18 billion. However, in the second half of 2020 alone, China witnessed a substantial increase in green bond issuances.
The study emphasizes the growth prospects of the green bond market, driven by global efforts to reduce carbon emissions. Additionally, the strong demand for green bonds from significant asset investors, including asset managers, insurers, and pension funds, contributes to its growth. According to the Climate Bonds Initiative, it is estimated that annual issuances will reach USD 1 trillion by 2023, marking a significant milestone despite the green bond market's current small share in the USD 130 trillion global bond market.
Makreo's study provides a comprehensive understanding of the past and present performance of green bonds at a regional level. By combining qualitative and quantitative factors, the study offers valuable insights into the market's performance, enabling investors and stakeholders to make informed decisions. Moreover, the study recognizes the importance of exploring various types of bonds present before delving into the green bond market, with a specific focus on the share contribution of each bond type in the broader sustainability bond market.
To Know More:- Global Green Bond Market Report – Past and Present Performance (https://www.makreo.com/
For more information about the study or to access the full report, please contact Meetu Bhasin at email@example.com.