Bond Market Asking `What Is Green?' Curbs Climate-Friendly Debt
- Green bond growth seen dropping for second year to 4 percent
- Companies grow cautious because securities draw more scrutiny
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Companies are second guessing whether to participate in green-bond markets as scrutiny by environmental groups raises the bar on what constitutes a climate-friendly security.
After quadrupling in size from 2012 to 2014, lifted by investors tracking environmental performance in addition to yield, the green bond market is expected to slow for a second consecutive year, according to Bloomberg New Energy Finance. Growth moderated to 28 percent last year and in 2016 may nudge ahead just 4 percent, to $50 billion, the London-based researcher said.