Growth and expectations of green bonds in the world

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The United Nations They called climate change a “Threat multiplier” and it is an urgent global problem. The main initiatives focus on reducing carbon footprints, from where the green bonds. In recent years there has been an increase in the issuance of green bonds due to concerns about climate change, according to Prableen Bajpai en

Green bonds are fixed income securities issued by countries, institutions and companies. The proceeds are used to finance environmental and climate-friendly projects, such as renewable energy projects, green buildings, or resource conservation. Green bonds are a segment of the broader umbrella of sustainable bonds, which also includes social and sustainability bonds.

The world’s first green bond was issued in 2007 for him European Investment Bank (EIB). The EIB pioneered the green bond market under the label Climate Awareness Bond (CAB). This was followed by the World Bank, which issued its first green bond in 2008 in association with SEB (Skandinaviska Enskilda Banken AB). Since 2008, the World Bank has issued nearly $ 16 billion in green bonds.

In march 2013, the International Finance Corporation (IFC) issued a $ 1 billion green bond to support IFC climate-friendly projects in developing countries. The bond was heavily oversubscribed, confirming “demand from a growing number of investors interested in weather-related opportunities.”

Also in 2013, Vasakronan, Sweden’s largest real estate company, issued the world’s first green corporate bond. On 2018, took the next step and issued the world’s first green commercial paper, with the funds earmarked for green assets. Same year, Bank of America Corporation (BAC) announced the issuance of a green bond to promote renewable energy initiatives and promote energy efficiency.

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On 2014, Unilever declared the first green sustainability bond in history. It was the firm’s first green bond in the sterling market and the first from a company in the consumer goods sector. During the same year, SolarCity (now Tesla TSLA) launched the nation’s first registered public offering of solar bonds, creating a simple way for people in the US to earn attractive returns on their investments while participating in the nation’s transformation to clean energy.

Year 2014 also witnessed the introductory auto industry asset-backed green bond from Toyota. The bonds were issued to support the sale of environmentally friendly vehicles and serve to advance its broad environmental commitment. Until December 2020, issued green bonds for a total of 6.1 billion dollars.

The participation and involvement of companies, which began in November 2013, was boosted by the historic agreement of the 2015 Paris Agreement, since hundreds of companies pledged to contribute to the cause.

Apple issued its first green bond for $ 1.5 billion in February 2016. In june 2017, the then president Donald J. Trump announced the withdrawal of the United States from the Paris Climate Agreement. It was later said that the United States “will begin negotiations to re-enter or negotiate an entirely new agreement with terms more favorable to the United States.”

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