Brazil green bonds top USD 3.5bn, 42% for clean energy

The labelled green bonds market in Brazil has hit BRL 11 billion (USD 3.5bn/EUR 3bn), but green bonds still represent just a tiny portion of overall bond issuance, the Climate Bonds Initiative (CBI) and SITAWI calculate.

In the first and second quarter of 2017, total of USD 288.4 billion of bonds were issued in the country. Green bonds represented just 0.2% of that, while globally, that share reached about 4% for the same period, shows the second Brazil Edition of the Bonds & Climate Change – The State of the Market 2017 report.

So far, 42% of the proceeds from Brazilian green bonds go for clean energy projects. The Agriculture and Forestry category is second with 24%, and then comes Water with 13%. Buildings & Industry, Waste & Pollution, Transport & Climate Adaptation each account for a single digit percentage.

“The Brazilian green finance market should now grow and diversify into sectors. Wind power and sustainable forest management were the low-hanging fruit. We look forward to see issuance for infrastructure, banks and agribusiness,” said Gustavo Pimentel, sustainable finance head at SITAWI Finanças do Bem.

The full report is available at: https://www.climatebonds.net/files/files/CBI-SotM-17-BR-English-WebFinal-01.pdf.

(BRL 10 = USD 3.15/EUR 2.67)

Choose your newsletter by Renewables Now. Join for free!