Green bond market set to reach $100bn in 2015

$32 billion in green bonds have already been issued this year which is more than double the total from 2013 and experts have predicted significant expansion of the market in 2015, according to the Climate Bond Initiative.

The figures represent a record in bonds and is leading to estimates that the expanding market will reach $100bn (£62bn) by 2015.

The green bond market comprises areas such as renewable energy, solutions and environmental degradation and is conducted in the same manner as regular bonds.

According to the Climate Bond Initiative (CBI), $11bn (£6.8bn) was issued throughout the course of 2013.

In the third quarter of 2013, the government-owned German bank KfW led the way with a €1.5bn green bond issuance, followed by AFD, a French development bank which issued a €1bn green bond.

The  European Investment Bank (EIB) issued €500m.

Luxembourg-based EIB’s latest issue suggests the bank has raised €6.2bn for investment since 2007, in energy efficient projects and renewable energy.

Sean Kidney continued: "Crédit Agricole, Bank of America Marrill Lynch (BAML) and SEB were the main drivers of the growth of the 'labelled' market in the last quarter that saw 28 green bonds issued. We predict $100bn of issuance in 2015 and green bonds to go mainstream in 2016."