A quantum leap in the global bond market occurred in 2007, with the advent of green bonds for the first time, when the European Investment Bank raised $817 million by selling this type of bond.
Since that time, investment in green bonds has gradually increased, and it has evolved from a market dominated by issuers such as international finance banks to a market that includes a diverse group of issuers such as private companies and banks to public utilities and governments.
And yet, since Poland launched its first sovereign issuance of green bonds in 2016, more countries have joined this path.
Last year, the European Union sold its first-ever green bond amid record demand, taking its first step into becoming the largest issuer of green debt with a record-size deal that raised nearly $14 billion.
With governments committed to green policies and investor appetite growing, the green bond market has expanded rapidly, reaching $1 trillion and 400 million in February of this year, according to REFINITIV statistics.
The momentum comes even though green bonds still make up a small portion of the overall global bond market, estimated at $130 trillion, according to the World Economic Forum.
Green bonds differ from other bonds, as they aim to obtain financing for sustainable projects related to the environment and climate, or green projects.
