Green bonds have proven to be a viable option for socially and environmentally responsible investments and are beginning to benefit water utilities in the U.S. In 2016, global green bond issuances reached almost US$81 billion, a 100% increase over 2015. A key driver to this increase has been investors’ interest in tapping into scaling concerns about climate change, pollution, and growing market sentiment towards sustainability.
A major difference between green and conventional bonds lies in the use of proceeds toward funding of environmental projects, including water. In this Research Note, Bluefield water experts analyze how green bonds, a fast-growing financial instrument, will help bridge the water infrastructure gap.
Given the heightened concerns about investment shortfalls in municipal water infrastructure, we expect water bonds to take on greater importance going forward.
This Research Note is available to US & Canada Municipal Infrastructure clients. Contact us to learn more about becoming a Bluefield Insight client.
Bluefield Takeaways
- Green bonds, a fast-growing financial instrument, designed to bridge infrastructure gap.
- Large issuances drive 2016 water bond volume
- Water bonds provide alternative, access to project financing for larger utilities
