We have seen a substantial acceleration in green bond issuance in recent years with good reason – green bonds are a very powerful tool to funnel capital to projects that can make a positive impact on the environment on the timeline needed. They also effectively show that organisations are working towards their sustainability goals – a vital commitment to make in today’s market.
The looming climate crisis and race to find solutions are driving the fast expansion of green finance, in particular the green bond market, where financial institutions, corporates, sovereigns and other government-related entities are raising capital to finance efforts to combat global warming.
According to Climate Bonds Initiative, the issuance of green bonds reached a record US$517.4 billion in 2021, up 74% from US$297 billion the previous year. At the end of March this year, ASEAN and East Asia accounted for 18.1% of outstanding sustainable bonds globally, trailing only Europe as the second-largest market.
