Majority of renewable energy green bond activity in 2016 hails from Europe


The latest bi-annual EY Renewable energy country attractiveness index (RECAI) sees European countries regaining ground after falling down the ranking to emerging markets in May 2016. When it comes to renewable energy green bonds, the report finds Europe experienced the greatest share of activity. A total of US$54.9b in renewable energy green bonds were issued in Europe since 2007, followed by North America with US$19.8b and Asia with US$4.5b.

Warren says: “The green bond market is enabling corporates, banks and development finance institutions to tap into enormous demand among investors for clean energy projects. In the last few years, we’ve seen significant growth in green bonds sold by issuers with plans to direct proceeds to environmental ends.”

Sixty-five percent of the proceeds of green bonds sold since the market’s inception in 2007 — or US$95.6b — have been channeled to renewable energy. As of July 2016, US$48.2b of green bonds had already been sold this year, compared to total full-year amounts of US$41.8b in 2015 and US$36.6b in 2014.

Warren says: “Green bonds currently serve to refinance existing projects for issuers and tick a box on the corporate responsibility agenda for investors. The ideal future state will see these financing vehicles used to bring new renewables projects to life.”

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