Amundi: green finance needs more diverse issuer base

Author: Karry Lai | Published: 16 Jul 2018

Transparency, regulatory certainty and standards harmonisation will help to clear the roadblocks to green bond growth globally, according to panellists at the International Capital Market Association's (ICMA) 2018 Green and Social Bond Principles conference in Hong Kong. 

The market will also benefit from more instruments and a wider variety of issuers coming to market. Globally, cumulative issuances of green bonds have reached $400 billion but the market still has potential to grow. The increase in market size and liquidity can help with trading of green bonds.

According to Stephanie Sfakianos, head of sustainable capital markets, BNP Paribas, public sector issuances are still dominant. "Sovereign issuances can help with benchmarking and liquidity," she said. "But corporates are still a bit daunted as they are risk adverse and the reluctance comes from regulatory uncertainty."

Eric Brard, head of fixed income, Amundi, said there needs to be more diversity in instruments, not...