Green bonds: A primer for energy project financing
Type: Research Study
Categories: Commercial, Energy Efficiency, Industrial, Commercial, Finance, Regulation
Date Published: 12/1/2016
Source: Institute for Market Transformation
Primary Topic: Finance
The use of green bonds —a type of debt used to fund projects yielding environmental benefits — has grown among U.S. corporations in recent years.
This report from the Institute for Market Transformation, the U.S. DOE's Better Building Initiative and the Retail Industry Leaders Association highlights the benefits and downsides of using green bonds and offers an overview of recent issuances from U.S. corporations including Apple, Regency Centers, Vornado Realty and Unilever.
According to the Climate Bonds Initiative, the global aggregate of green bond issuances increased from approximately $11 billion in 2013 to $41 billion in 2015. Corporations were the second largest issuer of green bonds (after development banks) in 2014, responsible for 33 percent of total issuances. In 2016, the green bond market is expected to top $50 billion. Forecasts suggest the green bond market will grow to over $1 trillion in annual issuances by 2020.
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