Sustainable finance looks set to dominate the market

Author: Jimmie Franklin | Published: 12 Jun 2019

Green bonds and other types of sustainable finance will soon be the norm and non-environmental instruments will be the outliers, according to sources.

Increasingly unpredictable weather events over the past year in particular have shifted public opinion and spurred a number of large-scale protests. Sean Kidney, chief executive officer at Climate Bonds Initiative, said: "Weather is only going to get hotter, and storms are only going to get more violent. In a political sense, parties now fight on a platform of climate change. It is hard not to anticipate what that will mean for different industries – and remember that emissions are continuing to rise."

Kidney anticipates that figures such as Greta Thunberg could end up causing a regulatory headache for banks and other institutions as they will make "governments panic into action, potentially banning things that aren’t environmentally sound. That is what is important in understanding the need for institutions...