In 2016, green bond issuance soared to a record high, accounting for $93.4 billion worth of investment worldwide, according to the latest report from ratings agency Moody’s.
Green bond issuance is expected to surge to more than $200 billion in 2017, Moody’s estimates. As recently as 2012, green bond issuance amounted only to $2.6 billion. The surge was attributable largely to Chinese borrowers, who accounted for $32.9 billion of the total, or more than a third of all issuances. But the interest is global, with the European Union and the United States among the leaders too.
The World Bank is a major issuer of green bonds. The institution has been very active through 2016, especially in the United States, where its issuances total over $500 million in U.S. dollars, and in India, where its issuances total over $2.7 billion Indian rupees. World Bank green bonds finance projects around the world, such as India’s Rampur Hydropower Project, which aims to provide low-carbon hydroelectric power to northern India’s electricity grid.