Green financial instruments continue to see widespread adoption and diversification, in terms of both instruments and geographies.
What's happening: Total green and sustainability debt issuance in 2019 is poised to double levels from 2017 and will be almost four times the level issued as recently as 2016, according to projections from the Institute of International Finance.
- The green bond market is still largely concentrated in a few countries and sectors but is growing quickly.
- One example: Kenyan property developer Acorn Holdings recently issued $41 million of debt to fund environmentally friendly student housing in Nairobi.
What they're saying: "At around $155 billion year to date (50% higher than the same period of 2018), green bond issuance is dominated by the U.S. and Europe, with public sector entities, utilities and banks leading the way. However, new entrants continue to make their green bond debuts," IIF economists wrote in a recent note to clients.
Go deeper: