SINGAPORE (June 18): The green bond segment is expected to continue to see growth this year despite the challenges faced in the first quarter. Sean Kidney, CEO and co-founder of the Climate Bond Initiative (CBI), says it has been a bumpy year so far because of a slowdown in issuances in countries such as China.

CBI projects a total of US$250 billion ($333.6 billion) will be raised via green bonds this year, but only US$51.1 billion had been raised as at the end of last month. “I am getting a bit nervous for this year. Growth may only get to 50% [of the targeted amount] rather than the 60% to 80% we expected,” says Kidney.

“However, there is growing regulatory and investor expectation on the banking sector and the largest global [carbon dioxide] emitters to disclose their climate risks and hence reflect the ‘brown to green’ transition in their balance sheets. This means, over time, there will be more capital flows towards green finance as these parties respond.”

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