The Task Force on Climate-related Financial Disclosures helped turn 2017 into the year of the green bond, with China the driving force, writes Mark Hillsdon. RE100, Science-Based Targets and carbon pricing all benefited from the ‘TCFD bounce’
If 2016 was the year that green finance entered the mainstream, then the last 12 months have seen it start to bed down and mature, with China increasingly filling the leadership role vacated by the US under Donald Trump.
November’s report from UN Environment showed that, having put green finance on the G20 agenda during its presidency in 2016, China has now become a driver in the global green bonds market, issuing 36 green bonds worth nearly $12bn in the first half of 2017 alone.
According to the Climate Bonds Initiative, green bond issuance will have reached $130bn by the end of the year, up from $81bn in 2016. (See Can we bank on a clean energy future?)
The figures are testament to the fact that more and more investors are aware that an economic crash caused by climate risk could dwarf the sub-prime mortgage crisis of 2008, and fear being left with so called “stranded assets”, shares in companies still mired in oil and coal.
This year pressure has been growing on businesses to come clean about the true extent of their climate risk, with calls for...