Global green bond issuance to hit $200 billion in 2019: Moody’s

Global green bond issuance will hit $200 billion in 2019, a projected 20 percent increase over last year, Moody’s has said in a recent report.

“We expect approximately 20 percent growth in the green bond market this year, following moderate 6 percent growth in 2018 to $167 billion,” Moody’s said.

Factors contributing to growth in 2019 and beyond will include strong investor demand, governmental focus on addressing climate change and increasing numbers of repeat green bond issuers.

Noting that issuance in 2018 fell short of its original forecast of $250 billion, which was primarily driven by a decline in overall global bond issuance, Moody’s added, “Despite slower growth in 2018, we see a number of supporting factors for growth in 2019 and beyond. A broader focus on sustainability will also drive growth in social, sustainability and other labeled bonds.”

Longer-term harmonization of global green bond standards and environmental impact reporting would further support development of the market, the report added.