"Given our Climate, social and health urgencies, citizens are counting on major transformations to take place. How do we make sure the Sustainable Bond market lives up to the promise of effectively catalysing trillions towards a net-zero, pollution free and regenerative future we can all thrive in? Can you please tell us about the state-of-play of the market and describe what is the greatest challenge we face moving forward?" Elisa Galván-Mondié
EU’s climate bank, EIB, plans to increase its level of support to climate action and environmental sustainability to exceed 50 % of its overall lending activity by 2025 and beyond.
The announced EC up to €250 bn green bond issuance under NextGeneration-EU Recovery package,
The EU Green Bond Standard (EU GBS) expected to be launched before Summer 2021.
This session was organized on June 4 by EU Green Week in collaboration with the Joint Research Center (European Commission) and the European Investment Bank. Elisa Galván-Mondié had the pleasure of moderating the one-hour discussion which gathered key players of these market developments.
EU Green week: zero pollution for healthier people & planet
Climate action and reducing pollution are at the heart of the European Green Deal. The related Investment Plan, worth € 1tn over the next decades, calls for the deployment of adequate financial instruments to mobilise such unprecedented amount of resources. Analysts anticipate a green bond rush, with governments and companies expected to issue green debt for nearly half of total volumes issued since market inception.
Aldo Romani,Head of Sustainability Funding, European Investment Bank (EIB)
Sven Gentner, Head of Unit, Directorate-General for Financial Stability, Financial Services and Capital Markets Union (DG Fisma), European Commission
Bernhard Windisch, Head of Unit, Directorate-General for Budget (DG BUDG), European Commission
Serena Fatica, Senior Economist Joint Research Centre (JRC), European Commission
Prof. Yao Wang, Director General, International Institute of Green Finance
Elisa Galvan Mondié
"The clock is ticking in humanity’s race to net zero and meeting the EU Green Deal's climate and environmental goals requires an unprecedented amount of resources. And this means deploying financial instruments which prove effective in reversing climate change, protecting us and our earth’s living systems. Linking to the Pollution topic of the event and the recently adopted Zero Pollution Action Plan, many of the sources of CO2 also produce pollutants. Therefore, harnessing and protecting nature’s cycles and capture power be it Carbon, phosphorus, nitrogen in the air, water and soil are some of the key shared solutions to both health harming pollutants and climate change. But the bottom line is that to avert climate disaster we need to stop adding CO2 into the atmosphere and drive capital towards this goal. Should we be focusing on critical issues such as cement & new buildings’ emissions or refrigerants for example? How much of our annual emissions are capital market funds deployed helping us reduce in order to get to Net-zero?
Although still a niche market of 8% in the larger scheme of the total global bond issuance, the Sustainable Bonds market, is set to continue its exponential growth. The “Green bond rush” expected in the coming years should be supported by the evolving EU legislation on Sustainable finance.
Our objective with or time today is understanding what is happening in the Sustainable Bonds & Capital markets to help bridge the investment gap, looking at the knock-on effects and prospective financial instruments, and critical challenges in redirecting capital towards a radical industrial model shift and technological transformation and what changes need to be made to face the future effectively.
Question to the panelists
"Given our Climate, social and health urgencies, citizens are counting on major transformations to take place. How do we make sure the Sustainable Bond market lives up to the promise of effectively catalysing trillions towards a net zero, pollution free and regenerative future we can all thrive in? Can you please tell us about the state-of-play of the market and describe what is the greatest challenge we face moving forward?"
Access the panelists key messages in the full video here: