Mobilizing private climate finance: green bonds and beyond

The international market for green bonds and securities that raise capital for specific climate or environmental sustainability purposes has experienced tremendous growth and could reach an annual market value of over 100 billion US dollars this year. As part of this growth, new market tools, skills, and capital have been introduced into the green bond market to reduce greenhouse gas emissions and more broadly address the problem of climate change. The rapid growth of the international green bond market is demonstrating how capital market mechanisms can enlist private capital to address global climate change and channel private sector funds to developed and emerging economies. As the Paris Climate Agreement is implemented it is critical to remember that the push to reduce emissions and switch to clean energy sources will also necessarily include the greening of the global financial system.