Green bond issuance for 2017 totalled USD155.5 billion, a new global record, and an increase of 78 per cent on the adjusted 2016 figure of USD87.2 billion, and well over the Climate Bonds Initiative’s USD130 billion estimate for the year.
Green Bond Highlights 2017 has the US leading on overall green issuance, followed by China and France, the three nations accounting for 56 per cent of the 2017 global total between them. Germany, Spain, Sweden, Netherlands, India, Mexico and Canada filled out the remaining Top10 positions. In the US, the largest overall issuer was Fannie Mae with a staggering USD24.9bn coming from its green Mortgage Backed Securities (MBS) programme – a volume so significant that it shifted the global market.
The largest single green bond placement originated from the Republic of France via its January 2017 EUR7 billion (USD7.6 billion) issuance, was the initial sovereign issue which ended the year at USD10.7 billion following two subsequent taps. Despite its overall bond market being much smaller than that of the US or China, France achieved the number three position in large part due to its high-profile sovereign green bond program.
Next largest cumulative bond issuers for the year were China Development Bank (USD4.6 billion), the supranational European Investment Bank – EIB (USD4.6 billion), and sub-sovereign New York MTA (USD4.2 billion).
Sean Kidney (pictured), CEO Climate Bonds Initiative, says: “There are now three vital years to reach the M2020 milestone of a trillion dollars in green finance by end 2020. The final results for 2017 provide some foundation, but must be doubled and doubled again by the end of the decade.
“The spotlight is now firmly on financial system actors, banks, insurers, corporates and institutional investors to achieve this vital 2020 climate investment target.”