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Australia Is in No Rush To Join Global Stampede To Green Bonds

  • AOFM’s Rob Nicholl says case based on cost isn’t there yet
  • Prime minister refuses to commit to net zero emissions date
Australian Confidence Plunges Amid Pessimism Over Economic Growth
Photographer: Lisa Maree Williams/Bloomberg

Don’t expect Australia to join the growing ranks of countries issuing debt to fund environmental objectives any time soon.

Sustainable finance is one of the hottest parts of global markets, with green bond issuance above $200 billion so far this year. But that surge is from a low base, said Rob Nicholl, chief executive officer at the Australian Office of Financial Management. And the agency isn’t yet convinced that the cost of raising green debt would be easily offset by a lower interest rate, he said in a speech at an event this week.