January 20 (Renewables Now) - Global green bond and loan issuance reached USD 254.9 billion (EUR 229.8bn) in 2019, up 49% on the year, show new figures by the Climate Bonds Initiative (CBI).
The 2019 issuance, of which USD 6.8 billion came from green loans, exceeds CBI’s projections for USD 230 billion-250 billion for the year. For this year, the organisation forecasts the world will issue between USD 350 billion and USD 400 billion in green bonds and loans.
“The 2019 results and 2020 estimates bring the vital international milestone of USD 1 trillion in annual green investment by 2021/2022 into sight,” said CBI’s CEO Sean Kidney. He added that the "acceleration into trillions of annual investments to support transition, adaptation and resilience must become the hallmark of the new decade.” According to the summary, the largest portion of the proceeds (31.5%) raised from green bond deals were directed towards clean energy projects
Sovereign green bond deals had a 10% share of the total issuance for last year, at USD 25.8 billion, coming from issuers from 12 countries.
The European Union (EU) was the largest market for international green bond placement, with an annual issuance of USD 106.7 billion. Countrywise, the US, China and France were the three top markets, contributing USD 50.6 billion, USD 30.1 billion and USD 29.5 billion, respectively. Collectively, the EU, US and China accounted for 73.5% of the 2019 total volume.
The top three global issuers came from the US, Germany and the Netherlands. Those were Fannie Mae (USD 22.8 billion), KfW (USD 9.02 billion) and the Dutch State Treasury Agency (USD 6.66 billion).
CBI will release a full analysis of the 2019 green issuance at the end of January.
(USD 1.0 = EUR 0.902)