www.climatebonds.net

Media release
For immediate release

New report reveals a $502.6 billion climate-themed bond universe
LONDON, 17 July 2014 – The Climate Bonds Initiative today launches its 2014 market sizing report“Bonds and Climate Change: the state of the market in 2014”. The report was commissioned by theHSBC Climate Change Centre of Excellence.
The report finds that:

The total universe of bonds linked to key climate changes solutions stands atUSD502.6bn, compared to last year’s estimate of USD346bn$35.8bn of the universe is made up of labelled Green Bonds issued by corporations
and development banks$236.8bn (47% of total) meets index filters around size, rating and currencies
Low carbon transport, notably rail accounts for 71% of the total, followed by clean
energy (15$) and climate finance (10%).

The report is the only one that attempts to estimate of global flows of bond finance towards climatesolutions. This includes the much-publicized labelled Green Bonds market ($35.8bn) as well as abroader market of bonds whose proceeds are used to finance climate solutions but are not labelled assuch.
The labelled Green Bonds market has grown rapidly since the 2013 iteration of this report fromapproximately $7bn to $35bn outstanding. Growth started in the latter half of 2013 and was driven by
the first Green Bond issuance from corporations. This growth has continued in 2014 withapproximately $20bn issued in 2014 to date. The report explores key trends and areas for future
growth in this market.
The broader climate-themed universe is an indicator of where future bonds might be labelled. In thisuniverse, the transport theme is dominant; partly due to the fact that rail (which makes up themajority) is a mature technology and therefore well suited to bond finance. Rail is seen as a lowcarbon transport, essentially to reducing use of short haul aviation and fuel-based vehicles
Sean Kidney, CEO of the Climate Bonds Initiative says "Investors are concerned about climatechange. This report shows how they can invest in climate bonds without risk. The investment
opportunities we find are safe and secure investment grade bonds. This is a Dull Green Market – justhow pension funds and insurance funds like it.”
Report co-author, Bridget Boulle adds “In the coming year we will see growth in labelled Green Bonds
from municipalities, cities and corporate issuers. We expect increasing demand from investors signed
up to the Principles for Responsible Investment and the Global Investor Coalition on ClimateChange.”
The report also explores emerging trends and opportunities for investors within this rapidly-changing
space and identifies where new innovative issuance may originate over the next year.
--ENDS—The report is attached with this email and can also be downloaded here.
For more information or to arrange interviews, please contact:
Rozalia Walencik, Communication officer, rozalia@climatebonds.net +44 772 382 8954,+44 207 749
2264
Bridget Boulle, Market Analyst, bridget.boulle@climatebonds.net
About Climate Bonds Initiative:
The Climate Bonds Initiative is an investor-focused not-for-profit, promoting large-scale investment ina rapid transition to a low-carbon and climate resilient
economy.www.climatebonds.net @ClimateBonds