Green Bonds Take Big Lead Over Fossil-Fuel Debt Deals
But the reasons behind this landmark moment in sustainable finance aren’t all positive.
Companies like RWE AG have raised billions of dollars this year selling green bonds, helping green debt outpace that of fossil fuels. In the case of the German utility, it claims the proceeds are earmarked for solar and wind projects. But the reality behind the rise of green bond issuance in 2023 is more complex than it seems.
Photographer: Jeoffrey Guillemard/BloombergFor the first time, companies and governments are raising considerably more money in the debt markets for environmentally friendly projects than they are for fossil fuels.
Almost $350 billion was raised from green bond sales and loan arrangements in the first half of this year, compared with less than $235 billion of oil, gas and coal-related financing, according to data compiled by Bloomberg. The ratio was roughly $300 billion green versus $315 billion fossil fuels in the same period last year.