Green bonds market to hit record $70bn in 2016

The global green bonds market will hit a record $70 billion this year, according to an estimate from Moody’s Investors Services.

China is forecast to dominate the green bonds market, which is expected to drive the total issuance to an all-time high.

The green bonds market, which drives investments in clean energy and environmentally friendly projects, had its best quarter ever in Q1 of 2016 with $16.9 billion worth of bonds being issued.

China accounted for $7.9 billion of the total overtaking the United States as the largest player in the green bonds market.

Moody’s forecast a total issuance of $50 billion in 2015 with the final total issuance being recorded as approximately $42 billion.

Several banks in China have been instructed to issue green bonds to raise cheaper funds to finance clean energy and energy efficiency projects.

The Chinese central bank has announced a quota system for banks and financial institutions to float green bonds and raise up to 300 billion Yuan (US$45 billion).