Green government bonds: the promise and the pitfalls - Fidelity International

Green sovereign debt issuance is on the rise and could dramatically improve liquidity and standards across the green bond market as a whole. Investor demand is high, but it is important both not to overpay for green sovereigns and to monitor what issuers do with ‘green’ funds.

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... Green government bonds were the fastest growing sustainable bond segment in 2020. First-time issuers accounted for 40 per cent of outstanding sovereign green bonds, according to OECD data, with the governments of Germany, Hungary, and Thailand among those making green bond debuts. 2021 has brought further issues of debt to finance green initiatives by countries such as the UK, and further innovations in green bond structures.

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