As another COP – or ‘conferences of the parties’ – comes and goes, it’s difficult to ignore that after nearly three decades of UN climate conventions, global carbon dioxide emissions are still rising1.
However, the Paris Agreement in 2015 did finally awaken business leaders to the financial risks of climate change. And it’s largely why supporting the energy transition to a low carbon world has since become a priority of governments and corporations globally.
Green bonds have emerged as one type of investment that can help finance a radical transformation of the energy mix. Moreover, innovations are coming online that can finance ‘nature-based solutions’ for oceans, forests, and agriculture.
For investors looking to have a positive environmental impact, green bonds are among some of the most transparent fixed income investments available
With governments now coming aboard the energy transition train, investment opportunities abound in the shift from fossil fuels to cleaner alternatives.
Whether it’s climate change, biodiversity loss, or pollution, our oceans will play a pivotal role in tackling the most pressing planetary crises.
Is it really worth paying a premium to issuers of green bonds over conventional bonds? And which factors might catalyse this ‘greenium’ in the future?
Diverse minds fuel insightful ideas. And ideas mean opportunities.