By the end of the third quarter, $4.2 trillion of green, social, sustainability, and sustainability linked (GSSS) bonds had been issued, according to the State of the Market report by the Climate Bonds Initiative.
The report, which was sponsored by IFC Green Bond Technical Assistance Programme (GB-TAP), found that green bonds accounted for over half followed by social bonds at $762bn, sustainability at $764bn, social at $762.7 billion, sustainability-linked debt at $42.5 billion, and transition on $12.7 billion.
It also showed that GSSS bonds from sovereign issuers were up 36% on last year, with $435bn issued in the first three quarters of 2023 by 49 different countries.
Sean Kidney, CEO of the Climate Bonds Initiative, noted the figures highlighted the importance of governments negotiating a strong outcome at the COP28 Climate Summit.
“This is well evidenced in the world of sustainable finance which has spread across the globe with trillions of debt spurred on by sovereign issuers, which has been crucial in catalysing climate capital,” he said.
Kidney added,”We urge that bigger and bolder initiatives need to emerge from COP28 to stoke capital flows to climate projects particularly in the most vulnerable areas, ensuring this decade keeps us poised to meet the Paris Agreement and avert the catastrophic demise of our planet.”
The update came as head of the International Monetary Fund Kristalina Georgieva gave an interview in which she argued a combination of carbon pricing policies, regulations and the phasing out of fossil fuel subsidies could deliver the levels of green investment the world needs to meet net zero goals.
“We have been slow on a very important policy thought, which is the incentive for investors by still tolerating high levels of fossil fuel subsidies,” she told the press. “And [the world has made this worse] by being still fairly slow on introducing carbon pricing and giving a trajectory for this carbon price upward.”
Georgieva also backed growing calls at the COP28 Climate Summit in Dubai for a new wave of carbon taxes to help finance climate-related projects in emerging and developing economies.
© Markets Media Europe 2023
