Green bonds to reach $1trln market for first time in 2021 - HSBC CEO

HSBC CEO Noel Quinn said the sustainable finance market was already up 60% to $777bln in first nine months of the year

  
US dollar bank notes. Image used for illustrative purpose.

US dollar bank notes. Image used for illustrative purpose.

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Green bonds will reach $1 trillion market in 2021 for the first time, as the sector is already up 60 percent in the first nine months of the year compared to last year. 

According to HSBC CEO Noel Quinn “a major industrial transformation” will take place in the next decade, pushing firms to become carbon neutral or carbon light, which would create a huge economic opportunity for economies.

Speaking at the Middle East Green Initiative Summit in Riyadh, he said: “The sustainable finance market is already growing rapidly. In the first nine months of 2021, green social and sustainable bonds raised more than $777 billion. That’s more than 60 percent higher than the same period last year.

“We’re actually on track this year for it to be the first trillion-dollar year for green bonds.  We’ve seen that reflected in our own business – this year alone, we have already helped customers issue $170 billion of green bonds.”

Next 1,000 unicorns

Larry Fink, CEO of BlackRock, said at the event that he believed the next 1,000 unicorns, companies valued more than $1 billion, would be businesses developing green agriculture, green steel or green cement.

He added: “That is not to say that we are going to divest from hydrocarbons. In fact, it is essential that we work with them and are playing a role in this solution.

“We’re supportive of hydrocarbon companies and believe they will be part of the solution of the green revolution of new green technology.”

The Middle East Green Initiative Summit, held in Riyadh, this week, also featured Prince Mohammed bin Salman bin Abdulaziz Al Saud, Crown Prince of the Kingdom of Saudi Arabia, John Kerry, Special Presidential Envoy for Climate, United States and Amina Mohammed, Deputy Secretary, United Nations.

(Writing by Imogen Lillywhite; editing by Seban Scaria)

Imogen.lillywhite@refinitiv.com

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