Nina Chestney

LONDON (Reuters] – Global green bond investors expect to increase by twofold and hit $1 trillion in a single calendar year, according to a Climate Bonds Initiative poll.

Climate Bonds Initiative is a non-profit organization based in London that encourages low-carbon investment. It projects that green bonds will hit a new record of $500 billion, an increase from the $297 billion last year.

Investors have been increasing the pressure on financial institutions and corporations to improve their environment, governance, and governance (ESG) activities. With green bonds issuance becoming more common to raise capital for low-carbon project financing, this is becoming increasingly popular.

Even though they are only a tiny fraction of total debt, green bonds have attracted attention due to the fact that trillions of US dollars of capital will be required in order for the government and the private sector to reach their emission reduction targets.

Based on 353 responses, the survey included information from investment managers, companies, asset owners, and development banks, and ratings and verification services providers.

The largest proportion of the respondents (quarter of the responses) said that in the fourth quarter next year, green bond investments would surpass $1 trillion.

The $1 trillion milestone was predicted to be achieved by 13%, 12% and 10% respectively. Others thought that the milestone would be further away.

Sean Kidney (chief executive at Climate Bonds Initiative) stated that “the long-awaited $1 trillion milestone has now become a market reality,”

But the climate crisis is growing. It’s time to lift our sights and aim higher. “Global finance policymakers must set a new benchmark of $5 trillion per year in green investment, by 2025,” he said.