LONDON Jan 11 The growth in global green bond
issuance could slow this year to $90-120 billion, with China
unlikely to repeat its record issuance and policymakers
abstaining from intervening in the nascent market, HSBC said on
Around $90 billion of green bonds were issued last year,
more than double the amount of 2015. Chinese green bonds made up
37 percent of issuance, compared with 2 percent in 2015.
The proceeds from so-called green bonds help finance
projects such as renewable energy, the energy-efficiency sector,
green transport and wastewater treatment.
HSBC expects issuance to be at around $90-120 billion this
year, a growth rate of 0 to 30 percent.
"We think growth will slow, as last year's commencement of
Chinese green bond supply was a one-off that cannot be
repeated," the bank said in a research note.
Policymakers are also not likely to intervene in the green
bond market this year while it is still growing and developing
"If green quality standards remain high, then we expect that
in time, policy practitioners may then step in and help further
to accelerate market growth," it added.
The green bond market is widely expected to expand steadily
in future, as a global climate change agreement and concerns
over the environment boost spending on green projects.
But it is still a tiny fraction of the overall bond market.
Commonly agreed standards on what constitutes a green bond and
transparency over how proceeds are used are needed to make the
market become more mainstream.
HSBC said sovereign green bond issuance could grow slightly
in 2017, with up to six governments expected to issue sovereign
(Reporting by Nina Chestney; editing by Susan Thomas)