Green bonds market grows by 78% in 2017
Between 2016 and 2017 the green bonds market grew by 78%, expanding from US$87.2bnto $155.5bn.
The US, China, and France were the largest contributing countries, collectively supplying 56% of issuance.
National and institutional investors funded more than $150bn into low-carbon projects in the review period.
The information was provided the Green Bond Highlights 2017 report, released on 10 January by The Climate Bonds Initiative (CBI).
Germany, Spain, Sweden, the Netherlands, India, Mexico, and Canada held the remaining top 10 positions, leaving the UK out.
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“With the world’s largest bank in China, ICBC, and other leaders from Europe to Australia issuing green bonds, expectations will grow on all the top 200 banks to commence green lending programs,” Commented Sean Kideny at CBI.
“The spotlight is now firmly on financial system actors, banks, insurers, corporates and institutional investors to achieve this vital 2020 climate investment target.”
The funds were mostly commonly used for investment into renewable energy. However , the reneable energy share dropped by 5% – from 38% in 2016 to 33% in 2017.
The amount devoted to low-carbon buildings and energy efficiency increased by 2.4 times year-on-year, contributing to 29% of total proceeds last year.
Drax advances biomass strategy with Pinnacle acquisition
The Group’s enlarged supply chain will have access to 4.9 million tonnes of operational capacity from 2022. Of this total, 2.9 million tonnes are available for Drax’s self-supply requirements in 2022, which will rise to 3.4 million tonnes in 2027.
The £424 million acquisition of the Canadian biomass pellet producer supports Drax' ambition to be carbon negative by 2030, using bioenergy with carbon capture and storage (BECCS) and will make a "significant contribution" in the UK cutting emissions by 78% by 2035 (click here).
This summer Drax will undertake maintenance on its CfD(2) biomass unit, including a high-pressure turbine upgrade to reduce maintenance costs and improve thermal efficiency, contributing to lower generation costs for Drax Power Station.
In March, Drax secured Capacity Market agreements for its hydro and pumped storage assets worth around £10 million for delivery October 2024-September 2025.
The limitations on BECCS are not technology but supply, with every gigatonne of CO2 stored per year requiring approximately 30-40 million hectares of BECCS feedstock, according to the Global CCS Institute. Nonetheless, BECCS should be seen as an essential complement to the required, wide-scale deployment of CCS to meet climate change targets, it concludes.