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Green Investment Frenzy Runs Risk of Becoming a Bubble, BIS Says

Photovoltaic modules on a solar farm.
Photovoltaic modules on a solar farm.Photographer: Bloomberg Creative Photos/Bloomberg Creative Collection

The rapid pace of growth in green investing raises the prospect of a bubble that could burst further down the road, according to the Bank for International Settlements. 

Price-to-earnings valuations for clean energy companies are high and more analysis is needed to understand how green investing is playing out in the credit market, the Basel-based institution said in its quarterly report published on Monday.