Bonds and Climate Change

The report identifies a $895 billion climate-aligned bond universe as of mid-2017, 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 China Railway Corp being the largest single issuer. The document highlights the growing importance of municipal and sovereign green bonds, particularly in the US and Europe, and provides a detailed analysis of Brazil's potential to expand its green finance market to meet its Paris Agreement targets. It concludes by advocating for a global green bond issuance target of $1 trillion per year by 2020.

• The global climate-aligned bond universe reached $895 billion, comprising 3,493 bonds from 1,128 issuers. This total includes $221 billion in labelled green bonds and $674 billion in unlabelled bonds issued by entities that enable a low carbon economy.
• Transport is the largest theme in the climate-aligned universe at $544 billion, primarily driven by rail infrastructure. China Railway Corp is the most significant issuer, accounting for $222 billion outstanding, which represents 25% of the entire global universe.
• Energy is the second-largest theme at $173.4 billion. Wind, solar, and mixed renewable energy account for 63% of this theme, while hydro accounts for 27%.
• Sovereign and sub-sovereign agencies represent a major portion of the market, accounting for 68% of the total amount outstanding in the climate-aligned universe.
• In Brazil, the green bond market is growing, with 9 bonds issued totaling $3.67 billion. The US dollar is the primary currency, representing 74% of the outstanding amount. The potential green bond market in Brazil could exceed $6.5 billion when including an estimated $2.9 billion in unlabelled climate-aligned bonds.
• Brazil's climate-smart investment potential for 2016–2030 is estimated at $1.3 trillion, the highest in its region. This includes a need for $209 billion in green infrastructure for rail and roads by 2020.
• The North American climate-aligned universe is $184 billion, with the US accounting for 81%. In the US, labelled green municipal bond issuance has increased to over $18 billion since 2015.
• Asia-Pacific is the largest region in the climate-aligned universe, with China accounting for 82% of the regional total. Rail accounts for 70% of the issuance in this region.
• The report highlights a target for global green bond issuance to reach $1 trillion per year by 2020 to support the implementation of Nationally Determined Contributions (NDCs).
• The first green sukuk (Islamic finance instrument) was issued in Malaysia by Tadau Energy in July 2017, supported by tax deductions and financing incentives from the Securities Commission Malaysia.

APA

Climate Bonds Initiative (2017). Bonds and Climate Change. https://www.climatebonds.net/files/documents/publications/CBI-SotM-17-BR-English-WebFinal-01.pdf

Chicago

Climate Bonds Initiative. Bonds and Climate Change. 2017. https://www.climatebonds.net/files/documents/publications/CBI-SotM-17-BR-English-WebFinal-01.pdf.

Wikipedia

{{cite report |author=Climate Bonds Initiative |title=Bonds and Climate Change |date=September 2017 |url=https://www.climatebonds.net/files/documents/publications/CBI-SotM-17-BR-English-WebFinal-01.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/CBI-SotM-17-BR-English-WebFinal-01.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }