Green bonds to close with slight growth in 2022: CBI

Global green bond issuance will end this year growing by just single digits, around 2%, the lowest percentage since 2015, impacted by rising interest rates and geopolitical conflicts.

From the beginning of January 2022 and until Thursday, December 22, the global debt issued under the green label amounted to 459.924 million dollars, a figure almost similar to the 452.177 million dollars reported by the Climate Bonds Initiative, a non-profit organization. profit that promotes green financing in the world.

“Geopolitical tensions and rising inflation faced this year have stunted the global bond market and contributed to a drop in green issuance. Although labeled debt, which has consistently attracted strong appetite from market investors, is expected to be able to offer resilience in difficult economic circumstances,” said Climate Bonds Initiative Executive Director Sean Kidney.

He added that “to meet the goals of the Paris Agreement for 2050, emissions must be reduced by half of this decade. This means scaling capital flows for climate causes at high speed, starting with an annual issuance of $5 trillion in sustainable finance by 2025.”

For the global firm S&P, the commitment of countries to increase their emission reduction targets and accelerate their decarbonization plans to limit global warming to 1.5 °C will help future green bond issuance and maintain its position as the dominant category. of sustainable bonds.

He projected that in particular, the issuance of sovereign bonds to finance green projects, including sustainable infrastructure and renewable energy, is likely to further accelerate this fixed income market.

In Mexico, the issuance of green bonds also registered a lower demand than in previous years, as companies preferred to issue sustainable bonds, made up of a green part and a social part.

Through the Mexican Stock Exchange (BMV) 80.983 million pesos have been raised with the joint issuance of 19 thematic bonds that include green debt with two issuances; those linked to sustainability and social, with six each, sustainable, with three and one blue.

judith.santiago@eleconomista.mx