Thu, Oct 28, 2021
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Other Voices: Will green bonds be enough to meet carbon reduction targets?

Thursday, October 07, 2021

By Gael Binot and Herve Chatot, respectively Emerging Markets Fixed Income Manager and Cross Asset Manager, La Francaise AM

At the end of 2020, the European Union decided to revise its environmental objectives upwards by targeting a 55% reduction in greenhouse gases by 2030 compared to 1990 levels, replacing the previous target of 40%. This new objective, "in line with the Paris agreement to contain the temperature rise well below 2°C" has led to a firmer commitment from EU Member States to accelerate investment in the green transition to fight against the negative impact of climate change.

A third of the €750 billion NextGenerationEU (NGEU) European recovery plan will be used to finance environmental projects by 2026. To achieve this target, the European Commission will issue €250 billion in green bonds over the next five years, thereby becoming the largest issuer of green bonds. European Commissioner Valdis Dombrovskis said that " "Europe will need around €350 billion euros of annual extra investment to meet its 2030 emissions target in energy systems alone."

The EU is developing a set of regulatory measures to ensure market transparency and guide investors towards genuine green investments.

In Europe, pending the future European standard (taxonomy) on green emissions which will not be available for at least a year, the first European green issuances will be based on current market practices. These practices are based on the voluntary standard of the Interna......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. SPACs: Is the SPAC boom fizzling out?, SPAC merger mania: Companies that went public via blank-check merger in Q3, SPAC marketing heavily curtailed in House Democrats' draft bill[more]

    Is the SPAC boom fizzling out? From Crunch Base: SPACs may be fizzling out. Since February 2021, when the SPAC (special-purpose acquisition company) craze was booming, a market selloff has wiped out about $75 billion of the value of companies that went public using SPACs, according to

  2. Institutional Investors: Vanderbilt University endowment records 57.1% return for fiscal year, MIT endowment logs 55.5% return for latest fiscal year, AP1 re-tenders $720m emerging markets small-cap mandate, Harvard, world's wealthiest university, sees endowment soar to $53.2bn, San Francisco shifts passive equity mandate to active BlackRock ESG strategy[more]

    Vanderbilt University endowment records 57.1% return for fiscal year From Vanderbilt University's endowment returned a net 57.1% in the fiscal year ended June 30, according to a financial report on the Nashville, Tenn.-based university. The report did not provide benchma

  3. New Launches: Massar Capital launches new global discretionary strategy, White Oak closes latest direct lending fund at $1.3bn, Aterian replicates speedy fundraise to collect $830m in nine weeks, Sofinnova holds $548m final close for Capital X, Multicoin Capital targets $250m for third crypto VC fund, Tobam launches French bitcoin and blockchain fund[more]

    Massar Capital launches new global discretionary strategy Massar Capital Management has launched a new discretionary macro hedge fund strategy which aims to capitalize on directional trading opportunities across a broad set of global markets. The Massar Macro Directional is the N

  4. How Viking Global became the hedge-fund industry's hottest launch pad[more]

    From Business Insider: Since Dan Sundheim's massively successful launch of D1 Capital in 2018, there have been six more spinoffs from Viking Global that have collectively raised billions - and at least one more is in the works. Among them: Grant Wonders, 31, who launched Voyager Global this ye

  5. PE/VC: Moody's warns of 'systemic risks' in private credit industry, Sequoia to restructure itself away from traditional VC model, Modeling private equity market beta, VC investors pour money into Chinese start-ups despite regulatory crackdown[more]

    Moody's warns of 'systemic risks' in private credit industry From FT: The burgeoning private credit industry of lending to buyout groups has grown to about $1tn, but opacity, eroding standards and the difficulty in trading these slices of debt pose "systemic risks", according to rating