As industries move towards greener solutions, this will only become more prevalent. From cars to building materials to even perfume, companies have begun venturing down the sustainability route at a breakneck pace. And all of this has only proven possible to the spike in green funding over the past few years.
And the world of green funding might be much larger than you think! According to a recent report by
For those out of the finance loop, bonds are essentially a type of funding earmarked for projects deemed as "sustainable". These can include green buildings, clean power generation, sustainable transportation, etc.
What makes 'green bonds' so mouth-watering is that they usually have a ton of attractive tax incentives, such as exemptions. Additionally, with India aiming to be carbon neutral by 2070, the country continues to dish out a ton of highly enticing funding to help with that climate goal.
The mere fact that such funding exists has helped generate new products that are vastly more sustainable than their current market counterparts. And for the past decade, domestic green power producers have continued to form the majority of beneficiaries of these green bonds.
According to the BNEF report, a monumental $42.9 billion worth of green bonds were dished out to the
However, this doesn't mean any monopolies are afoot, either. The annual shares of these top five issuers have continued to come down for the third year in a row, meaning more companies have begun dipping their toes in the green bond market.
Additionally, despite the stark depreciation of the
As more and more companies invest in sustainable projects, there is no doubt the assurance of ready financing will deter friction in their pipelines. The green revolution is nigh, and its ammo will undoubtedly be in the form of green bonds.