The $18bn worth of sustainable finance instruments floated in the nation last year marked a retreat from previous highs but, with most of the bonds issued from July onwards, the recovery is under way, according to the IFC, which is anticipating a more-than-$100 billion sector in emerging markets over the next three years.
China led the way for emerging market green bonds last year.
China’s green bond market slowed in the first six months of last year as the authorities focused instead on Covid-19-related financial instruments but a second-half recovery saw the nation again positioned as the number one ’emerging market’ economy in sustainable investment terms.
That was one of the findings of the latest edition of the Emerging Market Green Bond Report published by World Bank private-sector arm the International Finance Corporation (IFC) and French asset manager Amundi.
According to the third edition of the publication, published this month, China issued $18 billion of green bonds last year, most of them from July onwards, as East Asia and the Pacific regions dominated a $40 billion emerging market segment.
With China having posted more than $30 billion in green bonds in “previous years,” according to the IFC report, the fall was put down to the need to mobilize funding to drive an economic recovery from Covid-19 in the first half of the year.
The study is predicting emerging market green bond issuance worth $100 billion over the next three years, against a whole-world backdrop of $1 trillion of green bonds issued since 2007, thanks to $280 billion worth of issuances last year.
The IFC said Egypt, Kazakhstan and Saudi Arabia were among seven ’emerging nations’ to issue their first green bonds during 2020, as 101 entities launched 174 bonds with a total value of $40 billion. Other large providers of the sustainable finance instruments included Chile, Brazil and Indonesia, the IFC said in a press release published to publicize the report.
The IFC has stated green investment opportunities worth more than $10 trillion could be on offer this decade, driving the creation of 200 million jobs.
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