Green Bonds Market Update: $44.2 Billion to Date, 2016

It looks to be a record year for green bonds. From January 1 through July of this year, issuance of the purpose-driven financial products totaled $44.2 billion, according to the Climate Bonds Initiative. The total for all of 2015 was $41.8 billion, Green bonds target qualified green building and sustainable design projects, and —here’s the bottom line attraction—are tax exempt. Leading Issuers include the European Investment Bank, the International Finance Corporation, and the World Bank, and new entities such as India’s Axis Bank and the China Industrial Bank. Private companies are joining in, too, including Toyota, Apple, and Starbucks. At a time of low interest rates, sagging hedge fund returns, and an uncertain global economic climate, green bonds seem like a solid bet.

John Howell, Editorial Director

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