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CBI’s Sean Kidney: COVID-19 could teach us how to better respond to the climate change challenge

Join us for the latest Ethical Intelligence Podcast with Climate Bonds Initiative (CBI) CEO Sean Kidney, in which we delve deep into the current state of the global green bond market with Sean Kidney, explore the future of green bonds in today’s radically changing landscape, and discover why the global COVID-19 crisis could have an unexpected silver lining…

Sean Kidney, CEO, Climate Bonds Initiative

“One key point is that unlike SARS, this virus has gone fully global – and the idea that you can just look after your own national interest is disappearing very rapidly,” says Kidney. “That is critically important because the challenges that we face around climate change are very severe, are coming faster than expected, and will absolutely require a globally coordinated response. I think this crisis could be very useful to raise awareness around the need for global action, and that could support a greater willingness to act globally on emissions. It’s a painful learning experience, but this could be the silver lining.”

In this comprehensive discussion, we explore:

  • Drivers of last year’s record green bond growth;
  • Investor sentiment, and growth of green mandates;
  • Shift in perception from asset owners – parity of yield pushing switch to green;
  • Secondary market health – strong performance of green bonds in market downturns;
  • Tighter pricing at issuance driving a broader pool of investors;
  • Correlation between green bond issuance and stock price bounce;
  • Impact of COVID-19 on green bond issuance
  • Outperformance of green bonds in the event of a worldwide recession;
  • Barriers to entry for green bond issuers;
  • The shock of the EU green taxonomy and the ripple effect across fossil fuel industries;
  • Transition bonds, and why they are important;
  • Working towards an SDG taxonomy.

Download the Podcast to gain a thorough overview of the current green bond market, the opportunities and drivers within it, the commercial and climate imperatives driving it forward, and the cautiously positive outlook for 2020, despite the current Coronavirus crisis.

2019 review
In case you missed it, why not take a listen to last year’s 2019 Podcast, in which Kidney discusses in detail the prospects, challenges and drivers for the green bond market, including:

  • The scale and urgency of the environmental challenge;
  • Regulatory support for the green bond standard and market protocols;
  • Government incentives for green investment – including lower cost of capital through sovereign support;
  • Pricing, tighter spreads, and the death of the green bond premium;
  • How to reconcile short and long-term risk in your portfolio management strategy;
  • Demand v supply – why everyone is hunting for issuance;
  • Secondary market trading, and how hedge fund participation is driving downwards pressure on price;
  • Barriers to corporate entry, and how to overcome the scepticism of Treasurers and COOs;
  • The growth of green asset-backed and SGD-linked bonds;
  • Green Sukuk (Islamic bonds) and ASEAN opportunities;
  • The global debate over green bond guidelines and certification/taxonomy;
  • Top trend: issuing brown balance sheets to finance green issuance.
Sean Kidney, CEO, Climate Bonds Initiative

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