In a new report released at the 22nd annual UN Climate Change Summit (COP22) in Marrakesh, S&P Global Ratings reflects on the climate financing that has been achieved since the Paris Agreement in December 2015, and what more will be required to meet the Agreement’s aim of reducing global temperature rises.
The comprehensive report shows that green bonds have taken off within the past year. Municipal green bond issuance, for instance, is expected to expand by at least 50% in the US, where municipal governments are looking for ways to fund sustainable long-term environmental objectives. Global issuance has, in fact, grown by over 50% compared to 2015 totals.
S&P expects increased standardisation to spur green bond issuance yet further, as project types begin to diversify. Since green bond issuance has begun to diversify away from renewable energy – to include water, waste, and adaptation-focused bonds – there is increasing demand for introducing an assessment that successfully compares and evaluates different types green bonds and their environmental impact. For this reason, the report discusses the improvements made to S&P’s proposed Green Bond Evaluation tool, which is to be released in the early first quarter of 2017.
Additional aspects of the report include evaluations of aviation emissions, environmental policy-making, as well as corporate environmental, social, and governance assessment, among others.