Green Bonds have got a new meaning in the era of trade wars and tariffs. It can be used to mitigate the growing trade tensions but also to mitigate the Climate Change.
Green Bonds are targeted to projects that have environmental impact on for example energy efficiency, the efficient use of natural recources or green city infrastructure. Because of this nature, green Bonds are also modern tools to engage with the Paris Agreement and thus mitigate Climate Change.
According to Moody’s research the global green bonds issuance was nearly 45 billion dollars during the second quarter in 2018. And it is expected to grow to 175-200 billion dollars this year.
Many goverments have also talks related to public-private partnerships in order to finance different infrastructure projects.
Today the Japanese Nikkei newspaper stated that Japan is in talks with the US in order to build up sovereign wealth fund for US infrastructure investments. Japan and US have trade talks next week in Washington.
According to Nikkei Japan would raise capital from the private sector through bond issues as early as April 2019.