Scaling up Green Bond Market for Sustainable Development
A strategic guide for the public sector to stimulate private sector market development for green bonds
Other Report
Authors: Beate Sonerud Sean Kidney
Published By: UNEP Inquiry Climate Bonds Initiative
Date: Dec 2015
Scaling up Green Bond Market for Sustainable Development
This guide argues that with the right support in place USD 1 trillion of green bonds could be issued a year by 2020 – providing a significant contribution to closing the investment gap for climate-friendly infrastructure in both developed economies and emerging markets. It argues for several sets of policy actions to support and enable the green bond market to grow:
- Market building activities are low cost means to enable green bond markets to grow: Establish green project pipeline, strengthen local bond markets, strategic public green bond issuance and development of green bond standards.
- Proven support tools provide an additional boost to the market at its early stage: Strategic public green bond investment, credit enhancement, tax incentives and development of instruments to aggregate assets and structure risks.
- Innovative ideas are being trialed in some countries: Adjust risk weightings for green investments, preference green investments in central bank operations.