The green bond market is worth $100bn, but with $1trn needed to fund the low-energy transition by 2020, we assess what it will take to move the global financial system onto a more sustainable footing

Green finance is playing a growing role in combatting climate change. During the COP23 climate talks in Bonn earlier this month the green bond market, which saw a record $81.6bn in issuances last year, passed through $100bn with a $1.5bn issuance from the China Development Bank. The initiative is forecasting $130bn in issuances by the end of this year.

Last year saw the launch of the world’s first bourse for securities related to climate change in Luxembourg, which listed bonds worth $74bn in its first year of operation, while corporations such as Apple are issuing green bonds to finance a raft of sustainable projects.

The latest is Ørsted, formerly Dong Energy, which sold off its oil and gas business this year. The company raised €1.25bn within 10 hours to fund new and existing offshore wind power projects and convert CHP plants from coal to sustainable biomass.

The carbon bubble we have on our hands now will make the sub-prime bubble that led to the 2008 crash look like Bambi standing next to T-Rex

But there remains a huge funding gap. According to the New Climate Economy initiative the world needs to double its current investment, to about $6trn,...

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Aviva Investors  TFCD  impact investing  HSBC  Climate Bonds Initiative  green finance  China  Orsted  New Climate Economy Initiative  C40 Cities  Mission 2020  low-carbon transition 

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