The Climate Bonds Initiative (CBI) annual conference in London on March 20 provided the backdrop for the launch of a new pledge for the use of green bonds for infrastructure investment.
Speaking at the conference, former UN Climate Chief Christiana Figueres unveiled the new campaign for the pledge, which calls for public and corporate capital expenditure programs to be aligned with climate and emissions goals, according to CBI.
The Green Bond Pledge seeks to have cities, public authorities and the world’s largest corporate organizations commit to increase their use of green bond finance so that new infrastructure meets the challenges of climate change. The declaration was created to reinforce the goals of the Paris Agreement.
More than a dozen entities, including CBI and the Office of the Governor of California, worked together to create the pledge.
CBI estimates the issuance of green bonds will reach US$250-300 billion this year. CBI said that the theme of the conference in London was: “How to take the green bond market from billions to trillions.”
In a statement, Figueres said that “organizations committing to the Green Bond Pledge will help the necessary acceleration of capital flows — before 2020 — to deliver on a sustainable future.”
CBI CEO Sean Kidney said that the new pledge would “become the basis for cities and corporates to reorient the long-term investment and capital expenditure decisions on their balance sheets to address the unavoidable environmental and climate conditions of tomorrow.”