US restrains global green bonds growth

Author: Lizzie Meager | Published: 2 Sep 2015

After a slow start to the year, data from the second quarter suggest the green bond market has recovered.

According to an SEB report, issuance almost doubled from $7.3 billion in the first quarter to $12.1 billion over the next three months. But the asset class’s growth is being restricted by the absence of US issuers, according to market participants.

"The green bond market by now is an established part of the bond market, but all parties involved will need to re-double efforts for the green bond market to realise its full potential," said Christopher Flensborg, SEB’s head of sustainable products and product development who is regarded as the architect of the green bond instrument.

Along with the widely-held view that clearer definitions over what qualifies...