Record year for sustainable finance market

1st February 2019


P6 arrow istock 876686850

Related Topics

Related tags

  • Adaptation ,
  • sea ice loss ,
  • Mitigation ,
  • Finance

Author

IEMA

The sustainable finance market surged by 26% last year on the back of rising demand for green bonds and sustainability-linked loans – making 2018 the seventh consecutive record year for sustainable financing, with $247bn (£192bn) worth of debt instruments raised.

These are used to finance projects with environmental or social benefits, and are increasingly issued by governments and corporations to raise money for green initiatives.

“The markets are responding, with new products emerging such as green loans, green commercial paper and sustainability-linked loans,“ said Dan Shurey, head of green and sustainable finance at BloombergNEF, which compiled the data.

While green bonds continue to make up the largest part of the market, issuance grew by just 5% last year, compared to 68% in 2017, while sustainability-linked loans surged 677%. These are loans linked to the sustainability performance of the borrower. Last November, for example, French electricity company EDF agreed a €4bn credit facility tied to its environmental targets.

Meanwhile, green sovereign debt hit $17.6bn in 2018, rising 64% from the previous year as countries like Belgium and Ireland continued to raise funds for climate change mitigation and adaptation.

Image credit: iStock

Subscribe

Subscribe to IEMA's newsletters to receive timely articles, expert opinions, event announcements, and much more, directly in your inbox.


Transform articles

A social conscience

With a Taskforce on Inequality and Social-related Financial Disclosures in the pipeline, Beth Knight talks to Chris Seekings about increased recognition of social sustainability

6th June 2024

Read more

Disinformation about the impossibility of averting the climate crisis is part of an alarming turn in denialist tactics, writes David Burrows

6th June 2024

Read more

David Symons, FIEMA, director of sustainability at WSP, and IEMA’s Lesley Wilson, tell Chris Seekings why a growing number of organisations are turning to nature-based solutions to meet their climate goals

6th June 2024

Read more

A system-level review is needed to deliver a large-scale programme of retrofit for existing buildings. Failure to do so will risk missing net-zero targets, argues Amanda Williams

31st May 2024

Read more

Chris Seekings reports from a webinar helping sustainability professionals to use standards effectively

31st May 2024

Read more

Although many organisations focus on scope 1 and 2 emissions, it is vital to factor in scope 3 emissions and use their footprint to drive business change

31st May 2024

Read more

IEMA submits response to the Future Homes Standard consultation

31st May 2024

Read more

What is the role for nature in the Climate Change Act? Sophie Mairesse reports

20th May 2024

Read more

Media enquires

Looking for an expert to speak at an event or comment on an item in the news?

Find an expert

IEMA Cookie Notice

Clicking the ‘Accept all’ button means you are accepting analytics and third-party cookies. Our website uses necessary cookies which are required in order to make our website work. In addition to these, we use analytics and third-party cookies to optimise site functionality and give you the best possible experience. To control which cookies are set, click ‘Settings’. To learn more about cookies, how we use them on our website and how to change your cookie settings please view our cookie policy.

Manage cookie settings

Our use of cookies

You can learn more detailed information in our cookie policy.

Some cookies are essential, but non-essential cookies help us to improve the experience on our site by providing insights into how the site is being used. To maintain privacy management, this relies on cookie identifiers. Resetting or deleting your browser cookies will reset these preferences.

Essential cookies

These are cookies that are required for the operation of our website. They include, for example, cookies that enable you to log into secure areas of our website.

Analytics cookies

These cookies allow us to recognise and count the number of visitors to our website and to see how visitors move around our website when they are using it. This helps us to improve the way our website works.

Advertising cookies

These cookies allow us to tailor advertising to you based on your interests. If you do not accept these cookies, you will still see adverts, but these will be more generic.

Save and close