Green bonds’ dirtier cousins threaten to ‘greenwash’ industry criteria
‘Transition bonds’ are designed to help issuers in dirty industries, such as oil production and coal mining, finance their shift to cleaner ways of doing business
London — Green bond investors, celebrating a landmark step towards establishing market standards, are starting to worry that the next big thing in sustainable finance could undermine those efforts.
So-called transition bonds are designed to help issuers in dirty industries, such as oil production and coal mining, finance their shift to cleaner ways of doing business. The risk is that the bonds’ somewhat fuzzy criteria may allow companies to get funds for projects with few environmental benefits — exactly the sort of thing that planned EU guidelines are designed to prevent in the $600bn-plus green-bond market...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.