Looking at bonds, the absence of proof of concept makes the ‘testing phase’ – whereby an investor invests into purely green assets – risky. Instead, green bonds were created as a signalling tool for asset owners to emphasise their intent to investing in a sustainable manner, also enabling investors to efficiently track what it is they are actually financing.
The fight against climate change requires a global effort, ranging from political will to financial markets. Investors can help achieve the climate objectives set by the Paris Agreement and reinforce a continued shift towards decarbonisation.
Frederic Samama is deputy global head of institutional clients at Amundi
KEY FIGURES
131
Days after Donald Trump’s inauguration that the US president announced the withdrawal from the Paris Climate Accord
$3.4trn
Current annual expenditure on low carbon infrastructure
$6trn
Required annual spend on low-carbon infrastructure to meet the Paris agreement
100%
Growth of the green bond market in 2016
