Sustainable debt will amount to $ 1 trillion in 2021, according to Moody’s

So-called sustainable debt issues, to finance environmental or social projects, will reach $ 1,000 billion in 2021, Moody’s ESG Solutions anticipates on Wednesday. In the first nine months of the year, $ 775 billion of sustainable debt was issued, up more than 90% compared to 2020, according to the report of the group specializing in environmental, social and governance solutions (ESG ). This trajectory will make it possible to reach 1,000 billion dollars by the end of the year, against 600 billion in 2020, around 300 billion in 2019 and less than 200 billion in 2017.

Under the term sustainable debt, the study groups together four types of issues: the so-called green debt (green bonds), which should represent 500 billion in 2021, social debt (social bonds), sustainable bonds (sustainability bonds) to up to 200 million each in 2021 and the debt linked to sustainable development (sustainability-linked bonds), which should reach 100 billion. The first three categories concern investments exclusively devoted to environmental or social projects, while the last is linked to objectives set in advance by the issuer but without the sums being dedicated to a specific purpose. These issues are defined in particular on the basis of the International Association of Capital Markets (ICMA), a recognized standard used in particular by the European Commission to define the framework of its green bonds.

In the third quarter alone, more than 115 billion green issues were launched on the markets, a record over this period, of which nearly half (42%) came from companies, it is stressed in the study, which adds that “the increased market interest in accelerating climate actions has resulted in a record number of sustainable bond issues in 2021”.

So-called sustainable debt issues, to finance environmental or social projects, will reach $ 1,000 billion in 2021, Moody’s ESG Solutions anticipates on Wednesday. In the first nine months of the year, $ 775 billion of sustainable debt was issued, up more than 90% from 2020, according to the report from the group specializing in …

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