France, Spain, Nordics Still Lead Green Credit

With €847.90bn of green-labelled corporate bonds outstanding globally, institutional investors are showing preference toward increasingly high-ambitions of environmental sustainability. Allocations could increase if future issuance is congruent with environmental ambitions and expectations of mainstream and climate-centric investors. Europe leads global green issuance with €212.77bn of green corporate credit outstanding or 51% of global issuance. While Europe’s share has doubled over the last 18 months, there is momentum growth in green credit issued out of the United States. Europe’s effort to prioritize environmental sustainability from a monetary policy perspective means that 112 bonds (€65 par value) are eligible for the ECB QE initiatives, according to Bloomberg.