Partial alignment with the EU Taxonomy by some international peers may be the most investors can expect in the future, although the European Commission will promote international convergence on 'green' standards.
SwissRe has set a target to hold a total of $4 billion in sustainability bonds by 2024, after it reached $1.5 billion in green bond holdings.
Interest on loan reduced or exempted if client beats target score
The outperformance of environmental, social and governance (ESG) themed indexes has accelerated in the market turmoil caused by the coronavirus outbreak.
Former Bank of England (BoE) governor Mark Carney has described green bonds as a "success story", while lauding the benefits of sovereign issuers entering the market.
Carbon prices in the EU Emissions Trading System (EU ETS) have plummeted by 35% in five trading sessions as policy measures to curb the coronavirus outbreak slashed industrial activity - and therefore carbon emissions.
Countries are announcing a string of multi-billion dollar stimulus packages to support their economies amid the disruption caused by the coronavirus pandemic, but pressure is building on them to demonstrate a commitment to the green economy.
Green bond investors and providers of 'external reviews' have generally welcomed the latest recommendations for an EU Green Bond Standard (GBS) (LINK 1) but several expressed concerns about how widely it will be used.
The coronavirus pandemic is set to dampen the prospects of sustainability bond issuance in emerging markets in coming months, according to Moody's Investors Service.