Bonds and Climate Change

The report identifies a $895 billion climate-aligned bond universe, consisting of $221 billion in labelled green bonds and $674 billion in unlabelled bonds from pure-play issuers. Transport and energy are the dominant themes, with rail infrastructure being a primary driver. The document highlights the growing role of sovereign and sub-sovereign issuers, particularly in China and the US, and advocates for the green bond market to reach $1 trillion in annual issuance by 2020 to meet Paris Agreement targets.

• The total climate-aligned bond universe reached $895 billion in 2017, representing an increase of $201 billion over the previous year. This universe comprises 3,493 bonds from 1,128 issuers.
• Labelled green bonds account for $221 billion of the climate-aligned universe, while unlabelled bonds issued by pure-play entities enabling a low-carbon economy make up $674 billion.
• Transport is the largest climate theme, accounting for 61% of the universe ($544 billion), primarily driven by rail infrastructure. China Railway Corp is the single largest issuer with $222 billion outstanding.
• Energy is the second-largest theme at $173.4 billion, with wind, solar, and mixed renewables representing 63% and hydro representing 27%.
• Sovereign and sub-sovereign agencies are critical to the market, representing 68% of the total amount outstanding. In China, 90% of climate-aligned bonds were issued by entities backed by the sovereign or sub-sovereign government.
• The labelled green bond market grew significantly, with $81.4 billion issued in 2016, and 2017 projections suggest the market may exceed $100 billion in annual issuance.
• There is a significant gap between the current market size and the investment required for climate goals; the report notes a target for green bond issuance to reach $1 trillion annually by 2020.
• Regional analysis shows Asia-Pacific is the largest region in the climate-aligned universe, with China accounting for 82% of the regional total.
• In North America, the U.S. accounts for 81% of the $184 billion climate-aligned universe, with a strong presence of municipal green bonds exceeding $18 billion since 2015.
• The report identifies a lack of uniformity in post-issuance reporting, which complicates the comparison of climate impacts across different bonds.

APA

Climate Bonds Initiative (2017). Bonds and Climate Change. https://www.climatebonds.net/files/documents/publications/Bonds-and-Climate-Change-State-of-the-Market-2017.pdf

Chicago

Climate Bonds Initiative. Bonds and Climate Change. 2017. https://www.climatebonds.net/files/documents/publications/Bonds-and-Climate-Change-State-of-the-Market-2017.pdf.

Wikipedia

{{cite report |author=Climate Bonds Initiative |title=Bonds and Climate Change |date=September 2017 |url=https://www.climatebonds.net/files/documents/publications/Bonds-and-Climate-Change-State-of-the-Market-2017.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{climatebondsinitiative2017bonds, author = {{Climate Bonds Initiative}}, title = {{Bonds and Climate Change}}, institution = {Climate Bonds Initiative}, year = {2017}, month = sep, url = {https://www.climatebonds.net/files/documents/publications/Bonds-and-Climate-Change-State-of-the-Market-2017.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }