Finance

Europe’s Green Bond Revolution Could Help Lift Its Currency Too

  • Euro to be buoyed by sustainable debt financing: Standard Bank
  • Standard Bank sees euro rising to $1.30 in a year’s time
Photographer: Alex Kraus/Bloomberg
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Europe is set to become the world leader in green bond issuance and one of the side effects could be a stronger currency.

That’s the view of Standard Bank, which sees the euro rising to $1.30 in a year’s time, spurred in part by the European Union’s plan to sell 225 billion euros ($265 billion) of green debt as part of its pandemic recovery fund. With investor demand surging for environmentally-friendly assets, that could favor inflows into the common currency, it said.