Twelfth International Conference on Climate Change: Impacts & Responses

Abstract

Investment needs over the two decades are considered for renewable energy, the energy efficiency portion of building investments, and low-emission vehicles. These three sectors accounted for 75% of outstanding labeled green bonds as of June 2015. The analysis suggests that the 2020s have the potential to be the beginning of the “golden years” for bond issuance in the low-carbon sectors. As low-carbon technologies mature, they become more familiar with bond markets which can become substantial contributors to the financing and re-financing of new-build assets. As the costs of assets fall and as policy stabilizes, the role played by bonds could expand rapidly. The analysis examines the potential for different types of the bond to finance a range of sectors and sub-sectors of low-carbon investments studied; displaying a picture of the volume of outstanding securities through to 2035 and the speed at which they could potentially scale up. Further, the paper analyzes the World Bank Group approach to Green Bonds and some of the emerging findings relating to developing a low carbon transition in client countries.