China’s green bonds lose their lustre as push to hit climate goals boosts supply - South China Morning Post
Climate change: China’s green bonds lose premium over standard bonds as push to achieve environmental goals boosts supply | South China Morning Post
‘The supply of onshore green bonds has risen rapidly, driven by China’s carbon neutrality targets,’ says Sustainable Fitch. Photo: Getty Images
Climate change: China’s green bonds lose premium over standard bonds as push to achieve environmental goals boosts supply
- ‘The supply of onshore green bonds has risen rapidly, driven by China’s carbon neutrality targets,’ says Sustainable Fitch in a report
- The absence in China of ‘greenium’ – the premium investors pay for green bonds over conventional bonds – contrasts with developed markets, the report says
‘The supply of onshore green bonds has risen rapidly, driven by China’s carbon neutrality targets,’ says Sustainable Fitch. Photo: Getty Images
Related Knowledge Center: Climate economics
Climate change is now a driver of the world’s economy. The impact is profound:
- Catastrophic weather events — hurricanes, floods, droughts, high temperatures — are more frequent and more extreme. The cost can be measured in both the initial damage caused and the longer-term impact on the economy.
- Vulnerable communities are increasing climate-related investments, hardening infrastructure and taking other protective measures.
- Investment in carbon capture and storage technologies is increasingly rapidly.
- Governments are making investments and crafting regulations to reduce emissions of carbon dioxide and other greenhouse gases.
On top of all of this is the cost of uncertainty. As the Fourth National Climate Assessment, released in 2018 by the U.S. Global Change Research Program, says, “The assumption that current and future climate conditions will resemble the recent past is no longer valid.”