“A continued focus on climate mitigation financing, as well as growing interest in climate adaptation and nature, will spur green and sustainability bond issuance,” it said in the report.
In particular, increased investment in clean energy is expected to drive the issuance of sustainable bonds in the year ahead.
“While we expect climate mitigation projects will remain the focus, investment drivers will evolve, leading to more issuance related to data centres, nuclear energy and emerging green technologies,” it noted. The market is also expected to diversify toward climate adaptation and nature finance, Moody’s added.
In other segments of the market, such as social bonds, issuance “will be constrained by a lack of benchmark-sized projects,” along with a decline in pandemic-related social financing, the report said.
Additionally, transition and sustainability-linked bonds “will remain niche segments as…
