At the end of last year, the European Commission emphasised the potential high performance of green bonds, following a study it conducted on climate and environment investing.
The Commission’s study revealed that the European green bond market developed rapidly since its launch in 2007, signalling growth both in the public and private sector issuances. Similarly, Funds Europe also reported a double or even triple growth in the green bonds market over the last year.
The study’s purpose was also to identify the elements that hinder the expansion of this emerging market, considering that green bonds issuance still only equated a mere 0,13% of total bond issuance in Europe.
Among the ‘bottlenecks that hamper the further growth of the green bond market’, the Commission’s study highlights the ‘lack of green bonds definition and framework’, as well as a ‘lack of information and market knowledge’.
Stimulating investment in the climate and environmental sector through green bonds is part of the European Commission’s strategy for sustainable finance, for which the High Level Expert Group on Sustainable Finance has launched a questionnaire seeking feedback from stakeholders.
The Questionnaire on sustainable finance interim report follows the report presented in July 2017 and seeks to gather ‘targeted feedback on the analysis and reflection’ it carried out with regard to the current barriers to establishing a sustainable financial system.
As a strong supporter of sustainable finance, BETTER FINANCE will also respond to this questionnaire in order to contribute to the Expert Group’s efforts to promote sustainable investment vehicles for EU citizens as savers and investors.
You can find out more on what green bonds are and what the reasons are to invest in them here.