A Sustainable Investment in Journalism

A sustainable business requires diverse revenue streams. ESG Investor now operates a subscription service as of Tuesday 14th May. To find out more please get in touch with our subscription team on subscriptions@esginvestor.net

China Leads Way on Green Bond Issuance

China remains the biggest green bond market for the second consecutive year, according to the Climate Bonds Initiative (CBI). Green bonds for both onshore and offshore deals amounting to US$131 billion originated from Chinese issuers in 2023. Although this represented a 3.5% decrease in volume compared to 2022, the CBI noted that both the quality and credibility of green bonds increased, with 63.6% of these deals included in the Green Bond Database (GBDB) – an increase from 57.3% the previous year. “We expect debt instruments to play a more prominent role in China’s green transition and expect a credible transition finance market to provide additional funding for the decarbonisation of high carbon-emitting sectors, such as power, steel, chemicals and agriculture,” said Sean Kidney, CBI’s CEO. “Financing climate resilience will become the top priority on the agenda.” Germany came second in the ranking, having issued US$67.5 billion in green bonds, while the UK moved up from seventh to fourth with US$32.6 billion. Hong Kong logged the single largest increase, having grown by 173.3% year-on-year. For hard-to-abate sectors, China also maintained its status as the most frequent sustainability-linked bond (SLB) issuer, issuing 53 last year worth a total of US$5.7 billion of debt. “There is still a lot of demand and investment opportunities for climate finance, and we look forward to seeing China continue to maintain its world leadership in sustainable finance in terms of policies, standards, product innovation, and capacity building,” said Kidney. “This will not only help [the country] achieve its dual carbon goals, but also contribute to the global response to climate change and the goals of the Paris Agreement.”

The practical information hub for asset owners looking to invest successfully and sustainably for the long term. As best practice evolves, we will share the news, insights and data to guide asset owners on their individual journey to ESG integration.

Copyright © 2024 ESG Investor Ltd. Company No. 12893343. ESG Investor Ltd, Fox Court, 14 Grays Inn Road, London, WC1X 8HN

To Top