Green bond market, growing at 60% pa, becomes mainstream.

Guardian: “The market for green bonds has grown 60% this year compared to 2013, surpassing expectations and leading experts to say a niche has now become mainstream.”
“The climate bonds initiative (CBI) and HSBC said on Thursday that green bonds with a total value of $18.3bn (£10.7bn) were issued in the first half of 2014.
The figure greatly exceed issuance of $11bn in 2013 and have been fuelled by the activity of corporations, investment banks and even local authorities that are now piling into a market previously dominated by multilateral banks and agencies.
So-called green bonds are designed to raise capital for the low-carbon economy, and agreement by banks on a set of “green bond principles” in January has been seen as a major boost to growth.
At the start of the year, HSBC predicted issuance in 2014 could more than double to $25bn – but the latest figures suggest that the total could now hit $40bn. The CBI believes issuance in 2015 could reach $100bn.
Sean Kidney, CBI chief executive, attributes the rapid growth to new rules and transparency about green investment, simpler pricing, and the “ringfencing” of green bonds to ensure investments are dedicated solely to appropriate projects.
….The value of outstanding labelled green bonds – those that have not so far matured – reached $35.8bn in June, but the CBI estimates that total outstanding climate-related bonds could amount to $502bn.
The figure that is turning heads is the growth in private sector issuance by corporations and banks, whose participation in green finance is seen as crucial to addressing climate change, with corporates issuing $10.2bn (55%) so far in 2014 compared with $3bn (27%) last year.”