Green Bonds Seen Tripling to $40 Billion on New EntrantsEhren Goossens
With more than $16.6 billion issued worldwide this year, 2014 is on track to surpass $40 billion in green bonds as more companies issue the debt to finance clean energy projects, according to a report by Bloomberg New Energy Finance.
That’s only about 1 percent of the total $1.4 trillion U.S. corporate bond market, as asset-backed securities and self-labeled corporate bonds surge, the London-based research company said in a report yesterday.
Green bonds offer a simple method for investors to tap into fixed income markets and finance clean energy, including energy efficiency and sustainable business practices, and have already exceeded the $14 billion issued last year.
A coalition of banks, including Bank of America, JPMorgan Chase & Co., Credit Agricole SA and others created a common set of criteria for green bonds in January to act as a catalyst for the development of the market.