Photo: CNE El Salvador
The recent increase in emissions has been driven by the presence of relatively new countries in the market such as Germany, Japan or Denmark, the recovery of emissions in the United States and robust corporate and agency activity.
They have also appeared in the global market, incoming new sectors, including the liquid transport industry through large tankers, mining companies and airports. This presence has raised dissimilar opinions about the difference between green bonds and transitional bonds and what criteria and categories should be applied for each case.
This evolution responds primarily to the growing demand of investors who turn to the green bond market that continues to grow vigorously.
Indeed, as of November 30, 2019, green bond issues reached USD 247.6bn and the total accumulated issues since the market began in 2008 exceeded USD 800 billion. Other alternative registers, such as the accounting carried out by the Climate Bonds Initiative, exhibit similar emission levels, only slightly below that (USD 235.7 bn), also highlighting the strong presence of developed markets in the most recent issues.
In the region of Latin America and the Caribbean, an issue of the Colombian entity Autonomous Equity Securitization that specifies a first issuance in Colombian pesos of sustainability bonds worth USD41 million is worth noting. The proceeds of the emission will be used by the concessionaires to acquire buses that operate on compressed natural gas to circulate in four corridors of the Transmilenio fast transit bus (BRT) system. The vehicles to be purchased comply with the EURO VI emission standard.
Among many other recent issues, the Italian bank Intesa Sanpaolo, which returned to the market with a second issue of 750m euros (USD831m), will be dedicated to financing circular economy initiatives in different sectors, an incipient trend that will deepen in The near future among financial institutions.
This article originally appeared on pv-magazine-latam.com, and has been republished with permission by pv magazine (www.pv-magazine.com and www.pv-magazine-latam.com ).
