With environmental disasters becoming an increasing risk, businesses and policymakers around the world are sitting up and taking note of the effects of climate change on trade. Spurred by the 2015 Paris Agreement, carbon-reductive practices in energy and infrastructure – and the necessary financing – are rising, with green bond issuance nearly doubling in 2016 to US$95.6 billion. Although green bonds are gaining traction, other climate-finance instruments must also be encouraged, along with transparency, to ensure that they fulfil their aim.
Green financing was at the heart of the International Chamber of Commerce’s key messages at this year’s COP23 in Bonn. In the run-up to COP23, S&P contributed a blog post to the ICC’s website on the importance of green financing in helping businesses to mitigate their climate-related exposure and, ultimately, to achieve a low-carbon economy.
To read the full ICC COP23 blog post, please click here.