Work on mobilising the global bond market to finance the low carbon transition has received an unexpected boost at the hands of the Covid-19 pandemic. Green bond issues are vastly oversubscribed as investors show a clear preference for putting their money into shifting society in a new and better direction
RUSH TO GREEN
Mounting evidence indicates that investors are favouring green bonds that not only make money but serve a social purpose
PANDEMIC BONDS
Bonds issued to raise money for projects that are both environmentally sustainable and build resilience into the world economy are proving to be a smash hit
KEY QUOTE
“The resilience agenda is adding meat to the debate around the Sustainable Development Goals and how you ensure that societies can respond to crises.”
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Many believe the ECB and other central banks should bring climate considerations into the rulebook governing what they support and how
The impact of Covid-19 on decarbonisation efforts is likely to be short-lived if governments can learn lessons around the effective response to a crisis, says Paul Micallef Global Digital Grid Leader at EY
COVID-19 may have reduced emissions in the short-term, but much more needs to happen to slash fossil fuel use to meet climate targets
China has pledged to peak carbon emissions by 2030 at the latest, but its economic plan for 2021-2025 is expected to approve the building of more coal-powered plants
The best way to persuade treasuries and heads of state to put the environment and clean energy at the heart of packages aimed at stimulating economies after the coronavirus is to focus on debt-related risks, argues Brook Riley from Rockwool Group
Despite the constant flood of bad news related to Covid-19, there are signs we are also witnessing unprecedented global dialogue, innovation and collaboration, offering hope that climate change and clean energy can be at the forefront of post-pandemic plans, says Mark Watts, Executive Director of C40 Cities
The world’s development banks are funnelling ever-greater volumes of finance into clean energy — but the challenge of shifting entire economies away from climate-wrecking activity and towards actions that align investment goals with those of the Paris Agreement requires a more holistic approach
An EU taxonomy to define green investments is expected to enter into force in 2021, but some experts want it to be used immediately to inform stimulus packages aimed at dealing with the social and economic fallout from the Covid-19 pandemic
Politically there is broad support in Denmark for financing the green transition through taxes and a carbon emissions tax proposal has been welcomed by parties across the political spectrum, but industry opposition could ultimately quash the idea
To create demand for sustainable finance, governments should integrate climate criteria into their procurement and in how they draft policies and regulations
Despite the massive economic downfall as a result of the Covid-19 pandemic and lockdown, there remains strong demand for renewable energy assets, suggesting the sector will not suffer as it did after the 2008 recession
The UK is often cited as a leader in the transition to a clean energy economy, even though some British public money still flows to oil and fossil gas projects overseas
Europe is considering taking the bold step of introducing a border carbon adjustment tariff on goods imported from regions where carbon pricing is lacking, placing trade right in the middle of its climate ambitions