Green bonds: a cornerstone of sustainable finance
In 2017, green bonds issuance has reached a new record (over the $100bn mark). For ENGIE, they are a key lever to support low-carbon projects and speed-up the energy revolution. The Group is today the world largest Corporate issuer of green bonds, with €6.25bn of green bonds issued since 2014. ENGIE Chief Financial Officer, Judith Hartmann, explains why in an article published on LinkedIn.
Article published on LinkedIn on January 17, 2018 (extracts)
USD 93 trillion low carbon investments needed
USD 93 trillion: the amount of money needed to invest in infrastructures over the next 15 years in a “low-carbon” scenario (Source: OCDE report).
The key question is: how to shift funds away from carbon intensive activities while scaling up investments in low carbon technologies?
Two years after the signing of the Paris Agreement, the question of financing the energy transition remains at the heart of the fight against climate change. This was the key topic of the One Planet Summit organized at the initiative of the French President, Emmanuel Macron on December 12th, and the Climate Finance Day organized by the Ministry of Economy and Finance and Paris Europlace on December 11th.
Certainly, green bonds are a very concrete option to advance the low carbon agenda.
Green bonds issuance has reached a new record, getting over the $100bn mark
Green bonds are financial instruments where the proceeds are invested exclusively in green projects that generate climate and/or other environmental benefits.
Good news from the latest Cop 23 in Bonn: 2017 green bonds issuance has reached a new record, getting over the $100bn mark. It demonstrates booming investor demand for green bonds supporting projects that generate environmental benefits.
A lever for ENGIE to shape tomorrow´s low carbon and socially responsible energy world
As part of its sustainable growth strategy, ENGIE fully embraces the ongoing energy transition and aims to position itself as a pioneer in the new energy world. The Group is concentrating its new development in three areas, its “growth engines”: low-carbon power generation, global networks and customer solutions. Low-carbon activities will account for over 90% of the Group’s EBITDA by 2018.
With €6.25bn of green bonds issued since 2014, ENGIE is the largest Corporate issuer of Green bonds globally, confirming its commitment to lead the energy transition and to actively drive the development of sustainable finance.
By matching the company´s long-term view and investors´ sustainability goals, ENGIE considers green bonds as a key lever to shape tomorrow´s low carbon and socially responsible energy world.
A pledge to double down on green financing
Even if the volumes are growing rapidly, the green bond market remains currently small, with less than 2% of annual global bond issuance.
In order to foster the development of the green bond market, I have signed a pledge to double down on green financing, jointly with the CFOs of nine of Europe’s largest industrial issuers, representing EUR 26 billion in green bonds.
We call upon other industrial companies to consider issuing green bonds, which will further strengthen this market and enhance its interest from the growing number of climate-minded investors.
With green financing, I am personally convinced that we can align ecology and economy.
And thus we can speed up the energy revolution towards a low carbon and socially responsible world!