, China

Green bond issuance predicted to hit US$80b in 2016

It's more than double the size of 2015 issuance, thanks to China's aggressive market strategies.

Climate finance through the green bond market has grown substantially in 2016, funding both climate mitigation and adaptation efforts. This is according to Climate Bonds Initiative, which added that issuance in 2016 is on track to be more than double that of 2015.

Growth in 2016 has been driven by government action and demonstration issuance in China - soon to be the world’s largest green bond market - with other emerging markets growing, including India, Brazil and Mexico.

“To investors green bonds offer a stable, rated and liquid investment with long duration. To issuers, they could tap the US$100tr global institutional fixed income investor base,” Mark Carney, Governor of the Bank of England and FSB Chair, said.

Annual issuance of green bonds has quadrupled between 2013 and 2015. As of October 31st, total 2016 issuance is already 50% greater than the 2015 total. Moody’s has estimated that 2016 issuance will be US$80b.

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