The green bond market posted its biggest year in 2014, driven by a strong showing by corporate bond issuers and the entrance of municipal bond issuers, according to a report by the London-based Climate Bonds Initiative (CBI). Almost $37 billion worth of green bonds were issued in 2014, more than triple the 2013 issuance. CBI expects growth to continue in 2015, bringing the green bond market to an estimated $100 billion by year’s end.
Interest in the green bond market by cities, provinces and other municipalities emerged in 2014, making up about 13 percent of issuance, according to CBI. Development banks issued 44 percent of green bonds last year, while corporate issuers accounted for 33 percent of 2014’s total issuance.