Investments made into Green Bonds has soared in recent years, throwing off the labels from cynics that green investments are merely style over substance.
Countries and corporations alike are starting to take notice of the growing international demand, at home and abroad, for Socially Responsible Investments (SRIs), particularly Green Bonds.
Canada is a prime example of a nation where issuance is yet to catch up with demand, with investors willing to ‘crawl over each other to buy them’, when offered. This is highlighted by the Green Bond offering of January this year from the government of Ontario, where investor demand inspired an offer increase to Can$1 Billion, the largest Green Bond offer in Canada to date. Canadian issuance in 2017 saw an 80% increase from 2016 and 2018 is predicted to continue this trend, based on rising investor demand.
From a global perspective, Climate Bonds Initiative, an international, investor-focused non-profit organisation, predicts the Green Bonds market to grow to over $250 Billion by the end of Q4, 2018, an increase of over 55% from the previous year.
Even large multi-nationals such as BBVA have also decided to follow the global example being set, issuing an £881 Million Green Bond offer.
Amio Wealth was quick to recognise the trend in these emerging markets, identifying the Waste-to-Energy and Sustainable Housing sectors as those with the potential for significant growth over the coming months and years.
The waste sector alone has the potential to contribute a 10-15% reduction in global greenhouse gas emissions and with this comes the potential for lucrative investment opportunities.