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London Stock Exchange Group (LSEG) and the China Green Finance Committee, in partnership with Climate Bonds Initiative, co-hosted a landmark green bond conference on 23 October in London.
In the 21st century, financing global growth in a sustainable and clean way has become a key priority for governments and institutions around the world. Green and low carbon financing instruments have now become one of the fastest growing markets internationally. A record $36 billion of green bonds were issued in 2014, almost tripling 2013 total green bond issuance. By the end of 2015, total green bond issuance is expected to reach the $100 billion mark.
China has made sustainable and green growth a top priority, it is already the world’s largest clean tech investor, and the Peoples’ Bank of China (PBoC) has developed detailed proposals to green China’s financial system. In addition, the PBoC has established and chairs the China Green Finance Committee, collaborating with international partners to deliver more sustainable growth.
In the UK, the government and the financial sector have worked together on green finance, including through the establishment of the Green Investment Bank which funds green and low carbon projects. As the world’s most international financial centre with a highly sophisticated institutional investor base, London is perfectly placed to spearhead work with international partners on green finance. Climate Bonds Initiative, headquartered in London, has pioneered the revolution in green finance and is the only organisation working to mobilise the bond market for climate change solutions, as well as working with ambitious Chinese institutions.
London Stock Exchange has welcomed 24 green bonds to its markets, including those denominated in Renminbi and Rupees. In 2015, London Stock Exchange launched a range of dedicated ‘green bond’ segments on its fixed income market, offering issuers a flexible range of market models while benefiting from the international reach of London markets. No other global exchange has such a comprehensive offering.
In partnership with Climate Bonds Initiative and Foreign & Commonwealth Office, together with the PBoC administrated China Green Finance Committee, London Stock Exchange hosted a half-day conference focussed on green bond issuance on 23 October. The conference addressed a range of green finance topics including dedicated discussions on Chinese green bond issuance.