So-called ‘green bonds’ offer significant potential for financing capital investment in the chemical industry according to Sean Kidney, chief executive officer (CEO) of non-profit organisation the Climate Bonds Initiative.
Speaking in Milan at the fourth Italian national conference on chemistry and energy, he noted that according to the HSBC/Climate Bonds report
‘Bonds & Climate Change 2013’
, green and climate bonds are already a US$346bn sector, with issuance growing by 25% during 2012.
“The latest science shows that carbon emissions in industrialised countries will need to drop by at least 90% by 2050 in order to avoid severe climate change.” Kidney said. “The still largely petroleum-based chemical industry can play a leading role in this process.
“First, substantial progress is being made in switching to renewable biological feedstock. These are important developments in terms of a shift to a low-carbon industry.
“Secondly, the International Energy Agency (IEA) estimates that some 40% of investment in reducing greenhouse gas emissions to 2050 will be in energy efficiency. With an estimated 9% share of global energy use and large numbers of older plants, huge plant energy savings can be made with appropriate capital investment.”
The Climate Bonds Initiative, an investor-focused non-profit organisation promoting large-scale investment in the low-carbon economy, is examining the inclusion within its eligibility criteria of bonds used to finance such investments.
However, a London summit on the industry’s introduction of the technology cautions that testing and acceptance are still at an early stage and firms should proceed with caution.
The Danish shipping and oil conglomerate confirmed that it will separate its businesses into stand-alone transport and energy divisions.
The central bank has tweaked its stimulus programme and is making a fresh effort to push Japan’s inflation rate above its 2% target.
A total of US$4.88 trillion of debt has been sold so far this year reports Dealogic, close to the level of 2007 when US$4.91 trillion of bonds were issued over the same period.