VanEck The climate challenge and the role of green bonds Discussions about climate change and carbon emissions can elicit debate and rhetoric around both the causes of and solutions to,…
VanEck Although the green label has begun to attract investor attention as a way to identify bonds which have a clearly disclosed use of proceeds that aims to benefit the…
VanEck What are green bonds? A bond is generally considered to be “green” if the issuance proceeds are used solely to finance projects or activities that have a positive environmental…
VanEck Introduction The size of the green bond market has increased significantly in recent years, with issuance nearly doubling in 2016 from 2015 levels, from $41 billion to $82 billion;…
In this environment, green bonds could offer investors an option to hedge their portfolios against climate-related risk and enjoy a good risk-return profile.
As we’ve seen, green bonds add value to the environment. But they can also provide you with diversification benefits.
There isn’t much difference between a conventional bond and a green bond (GRNB), also known as a climate bond. Both have similar risk-return profiles.
Green bonds can boost an issuer’s image and reputation, reflecting its commitment to the environment.
In order for the green bond market to expand further, government roles are vital.
The main reason for starting the Climate Bonds Initiative was to streamline the standardization process of the green bonds market.
Since the introduction of the first green bond in 2007, various emerging markets such as China and India are considering the green financing option.
The demand for green bonds (GRNB) is rising, with expectations of the issuance level reaching ~$150.0 billion during 2017.
Although the United States was part of the Paris Agreement during the Obama administration, participation could be doubtful under the Trump administration.
Climate-related policies and a transition to a low-carbon economy require capital, and most countries are already burdened with high debt.
Extreme climate change events hamper productivity, thus affecting industries such as agriculture, fishing, energy, trade, transportation, and tourism.
The green bond universe includes more than 600 bonds from 24 countries in 23 currencies.
The proceeds from the issuance of a green bond are used solely to finance “green” projects, or those that are environmentally friendly.
In this highly uncertain global market, the climate change factor has taken a back seat. But we can’t ignore its effect on the economy and its financial impact.
VanEck BUTCHER: What should investors be looking for in 2017? VAN ECK: A key question is whether Congress will fix the U.S.’s long-term debt problem. If it doesn’t, our entitlement…
VanEck BUTCHER: How do you expect the Trump administration to affect your outlook? VAN ECK: As an investor, you have to filter out a lot of the noise and just…