Featured in Gaining Traction – 02-2022

Sustainable debt has shown its potential in 2021

Last year marked another milestone for sustainable debt, with more than $1.6 trillion issued. This brings the total market to over $4 trillion. Sustainable debt can directly finance green and social projects, as is the case for green and social bonds and loans. It can also push organizations to move their sustainability agendas forward by giving them preferential financing conditions if they meet certain sustainability metrics, as is the case for sustainability-linked bonds and loans. Maia Godemer, research associate at BloombergNEF, reports on the latest developments.

By

pv magazine

11 Feb 2022

The EU now faces a new controversy that could undermine its ambitious sustainable finance agenda, as it published a draft complementary delegated act on Dec. 31, 2021, to propose the inclusion of natural gas and nuclear in its green taxonomy. | Flickr/Thijs ter Haar

In many ways, sustainable debt exceeded expectations in 2021. Green bonds doubled in issuance between 2020 and 2021, with volumes reaching more than $620 billion. Green bonds alone made up nearly 38% of the 2021 sustainable debt market, led by issuances from financial institutions. However, every sector increased its green bond issuance between 2020 and …

This article is part of pv+

Subscribe digitally to unlock exclusive investigative reporting, expert insights, in-depth analysis, and premium background coverage. Your subscription also includes full access to the digital edition of our magazine.