"The Australian climate bond market has now grown to more than $4 billion, bringing with it more than 100 institutional investors. The CEFC has invested some $325 million into the green bond market, making it one of the largest single investors in this growing sector."
Australia only makes up a small part of the global green bond market.
"China, India and France are poised to spur new “green bond” issues, meaning the nascent market is set to boom despite a setback in the United States under President-elect Donald Trump.
Total issuance of green bonds this year is tipped to hit $US80 billion ($108.2 billion), bringing the total market size to $US150 billion ($202.8 billion).
“The green bond market is in its infancy but it is growing fast and has huge potential,” AB senior portfolio manager Erin Bigley said.
She tipped that more mainstream institutions would pile into green bonds as attitudes about how to manage environmental, social, and governance (ESG) risks within investment portfolios shifted towards a more proactive stance."
