Takeaways from this discussion:
- Green bond issues are surging worldwide, eclipsing US$257 billion in 2019.
- Major corporates, including many not usually associated with climate initiatives, are bringing green bonds to market, spanning the investment grade and high-yield spectrum and including more exotic instruments as convertibles and covered bonds.
- Green bond qualifying standards in Europe differ from those in the United States. An EU Green Bond Standard may be adopted as early as Q4 2020.
- First-time issuers should plan time to calibrate their green bond framework and prepare for reporting requirements, enhanced investor outreach, and potential for liability.
- “Greenwashing” remains a concern.