by Aila Aho, Head of Sustainable Financing, Nordea, Wholesale Banking, and Andre Chanavat, Senior Product Manager, Thomson Reuters
The concept of green bonds dates back to 2007, when the European Investment Bank and the World Bank pioneered this type of instrument as a way of raising funds for projects tackling climate- and environment- friendly projects. Since then, multilateral development banks have continued to issue green bonds, mostly in relatively small sizes.
More recently, however, the market has seen an influx of new issues – and in 2014 alone, the market tripled in size. The recent growth has been spurred in part by a greater focus around the world on climate change, resource efficiency and green issues in general.