As the world moves towards green capital investment, there has been a boom in sustainable debt products. Traditional modes of financing are now coming with Environmental, Social, and Corporate Governance riders, and emerging markets such as India are increasingly tapping into such resources.
However, issuances have remained concentrated in high-income countries.
“Global sustainable debt issuance has experienced exponential growth, reaching a record $730 billion in 2020, with high-income countries accounting for 77 per cent of the decade’s headline figure,” according to a report by the Climate Finance Leadership Initiative (CFLI). The CFLI, formed by former New York Mayor Michael Bloomberg, has in its members Allianz Global Investors, AXA, Bloomberg, Enel, Goldman Sachs, Japan’s Government Pension Investment Fund, HSBC, and Macquarie.
According to the report, titled ‘Unlocking Private Climate Finance in Emerging Markets: Private Sector Considerations for Policymakers’, China leads the pack in emerging markets in raising such debt.