Why green bonds from European banks are pivotal to the low carbon transition

Market could reach €200bn in 2-3 years

clock • 4 min read
Romain Miginiac of Atlanticomnium and Stephanie Maier of GAM Investments
Image:

Romain Miginiac of Atlanticomnium and Stephanie Maier of GAM Investments

Despite their central role in causing the global financial crisis, exactly 13 years ago this week, banks remain at the centre of the European economy.

They finance more than 90% of European small and medium-sized enterprises (SMEs) and approximately 80% of European corporates. That means they also have a central role to play in today's biggest crisis: the climate challenge. It is not just their direct financing activities - in the energy sector alone the top 35 banks provided close to $3trn of funding in three years to 2019. But banks also have a critical multiplier effect on the rest of economy through their engagement with existing clients. Engagement between bankers and clients tends to be longstanding and forward-looking and ...

To continue reading this article...

Join Investment Week

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on ESG

Investors look away from energy intensive sectors such as chemicals, metals and manufacturing.

'An investor's worst nightmare': Energy rationing spells greater chaos for supply chains

Business confidence falls

clock 05 August 2022 • 5 min read
Lee Robinson, founder and CIO, Altana Weath
ESG

Carbon trading: the big long

Time for a different hedge

Lee Robinson
clock 05 August 2022 • 4 min read
25 out of 36 companies in Morningstar’s coverage have faced controversy over human rights abuses.
ESG

High ESG risk fashion industry continues to threaten investor capital

Luxury apparel faces counterfeit risk

clock 04 August 2022 • 2 min read
Trustpilot