The IENE Research Team has just completed a timely study concerning "The Role of Green Bonds in financing renewables and low carbon projects in SE Europe"The study points out that the use of ESG criteria is becoming more and more relevant for project investment worldwide, highlighting the role of green bonds. According to this IENE study in 2023, Climate Bonds captured aligned volume of USD870bn, 3% more than the 2022 figure of USD842.8bn. Two thirds of this (67.5%) were from the green bonds which added USD587.6bn reflecting a 15% year-on-year increase. Conversely, there was a year-on-year decline in the volume of social and sustainability bonds by 7% and 30% respectively. The smallest segment, sustainability-linked bonds (SLBs) experienced a remarkable 83% increase in aligned volume, reaching USD21.4bn compared to USD11.7bn in 2022, and Climate Bonds expects the aligned SLB market to grow rapidly in 2024.
Figure: Aligned GSS+ issuance increased to USD870bn in 2023
Source: Climate Bond Initiative
In addition, the IENE study focusses on the important role of green finance in enhancing green energy solutions, especially in the countries of SE Europe, while it attempts to predict the outlook and challenges of green finance in volatile economic conditions. The alignment of sovereign green bond markets with the energy transition is discussed thoroughly in latest IENE study, providing a detailed overview of the global sovereign green bond market. Moreover, the role of exchanges in accelerating the growth of the green bond market is also emphasized.
In SE Europe, an issuance market for green bonds does not actually exist, with only a small number of private sector companies and financial institutions having issued green bonds, but there are great prospects as the region is moving towards decarbonization and RES and energy efficiency projects are constantly increasing.
As of January 2021, IENE became the first organisation in Greece and SE Europe to be granted Approved Verifier status under the Climate Bond Standard. This is a significant milestone in the development of green bond markets in SE Europe. Over the years, IENE has built a regional network of energy experts with considerable experience on RES and energy efficiency projects, including advisory and assurance professionals, with solid experience and hence capable in supporting clients on green bond issuance across SE Europe.
IENE’s latest Study can be found here.
