The overwhelming investor turnout for a climate bond issued by Terna Energy, Greece’s first environmental bond, has turned the domestic market’s attention to this financing tool, introduced to Greece for the first time with this Terna issue but already experiencing rapid growth on an international scale.
Green bonds were introduced as financial tools to support RES projects developed by governments and private-sector enterprises.
Indicative of the emphasis on climate bonds being placed elsewhere, China’s seven major regulatory authorities recently announced a series of common guidelines for the establishment of a “green” financial system, the objective being to transform the country’s economy into an eco-friendly economy.
Climate bonds emerged in 2007 and have since experienced rapid growth. Green bond issues are expected to reach a total of approximately 150 billion dollars this year, up from 81 billion dollars last year and 3 billion dollars in 2012.
The USA stands is the biggest issuer of climate bonds ($29.2bn, based on data until 2016), followed by India ($23.6bn), China ($19.5bn), France ($19.4bn), Germany ($12.5bn), Sweden ($6.1bn), Mexico ($2.6bn), Canada ($2.4bn), Japan ($1.8bn) and Australia ($1.67bn).