Can capital markets succeed where governments fail?
It’s been five years since the Paris climate summit. As the world reflects on where we stand in battling the escalating climate crisis, the good news is that a majority of leaders, organizations and people now get it: The climate crisis is real.
So, now what? Contributor Tony Lent, an astute observer of climate challenge for 27 years, asks a provocative question in his essay this week: Can capital markets succeed where governments fail?
Key to the success of a rapid global climate mobilization will be the allocation of capital to finance, through something called a green bond. 2020 saw a surge in green bonds, and their cousins — sustainable, social and pandemic bonds. The growth of these bonds is significant: More than $1 trillion in green bonds have been issued since the European Investment Bank issued the first green bond in 2007.
So, this week, we launched the U.S. Green Bond Review, a newsletter developed in partnership with Sean Kidney and the Climate Bonds Initiative (you can sign up to receive it here). If you have not heard of him, you will. Sean and his global team have developed the gold standard for determining whether a bond is really green. The proof of this is in the pudding: The organization’s board comprises organizations managing over $51 trillion in assets.
But the story of green bonds is more than just following the money. Each bond is a story in itself. Each one provides funding for important climate-related projects — in efficient transportation, renewable energy, clean water and more. Taken together, these are the building blocks for a new climate age. Each issue of the U.S. Green Bond Review will bring you the key news, charts, stats, and feature stories to keep you informed on this critical financing tool.
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