Outlooks for the green bond market were published across the financial world in January. For instance, an article from Reuters reported that London-based HSBC expects issuances of green bonds to double to $25 billion in 2016, more than twice the $11.4 billion issued in 2015. Under HSBC’s definition, green bonds fund projects with environmental benefits. In general, says HSBC, green bonds have financed projects in three areas: low carbon energy, energy efficiency (in buildings, industry and transportation), and environmental and land use, including climate change adaptation projects in the water sector.
Many financial and non-profit institutions have developed or are beginning to develop methodologies and standards for green bonds. These include the Climate Bonds Initiative draft standard (see related story in this issue), published for comment in November 2015, the 2015 green bond principles of the International Capital Market Association and Moody’s proposed methodology for Green Bonds Assessment (GBA). Moody’s GBA is open for comment through February 12, 2016. AMWA members with comments on the Moody’s methodology are encouraged to send them to Erica Brown by February 9 for consideration to be included in the association’s comment letter.