GS Asset Management experts see in the green bond market, crucial for financing the transition to a sustainable economy, strong growth potential that responsible investors can capitalize on
Financing the transition to a sustainable economy will require significant capital. According to a recent estimate, the average annual investment needed to achieve a net-zero global economy by 2050 would be around $9.4 trillion (source: Swiss Re Institute,“Decarbonisation tracker. Progress to net zero through the lens of investment”as of October 7, 2022)
THE GROWTH OF GREEN BONDS IN THE YEARS TO COME
The global bond market will be an important source of investment to drive the climate transition and green bonds, or “green bonds”, will finance projects with a positive environmental impact. “The growth of the green bond market will be driven by three main forces: increased issuance to finance the energy transition and address physical climate risks, strong demand from investors looking for potentially attractive yields, while eager to advance the shift to a low-carbon economy, and support from policy makers by creating incentives and setting standards that encourage green investment,” he said. Brad BosLead Portfolio Manager for Green, Social and Impact Bonds di Goldman Sachs (NYSE:) Asset Management…
** This article was written by FinanciaLounge