Moving communities away from carbon dependence is a serious challenge; to achieve the goal of $53 trillion in clean energy investment needed by 2035 to keep global warming below two degrees, the International Energy Agency suggests using several tools, including Green Bonds.\u00a0Green bonds can promote the adoption of innovative new technologies, finance projects that create green jobs, and promote economic and climate resilience in all regions.<\/p>\n
. Investors are increasingly demanding socially responsible investing<\/a> (SRI) opportunities and have expressed a strong appetite for green bonds by repeatedly oversubscribing to issues.\u00a0While retail investors demand sustainable investments from their brokers and fund managers, institutional investors are using green bonds to address ESG (environment, social, governance) mandates, something that, prior to green bonds, had been a struggle to address with fixed income tools.\u00a0As a result, green bond issues have attracted new investors and new types of investors, providing a potential market for future issues.<\/p>\n Enabling projects at a lower cost of capital<\/strong>.<\/p>\n Green bonds are an excellent way to secure large amounts of capital to support environmental investments that might otherwise be unavailable or uneconomical using more expensive capital.\u00a0Green bonds are well suited for large-scale sustainability projects, such as wind and solar development, which often require capital investment prior to proceeds and generate modest revenues over a longer investment horizon.<\/p>\n
\nInvestor demand and diversification<\/strong>.<\/p>\n