A recent visit to Iceland by Sean Kidney, founder and CEO of the Climate Bonds Initiative (CBI), was very successful and well received by both investors and Icelandic media outlets. Fossar Markets organised Kidney’s visit to coincide with Fossar joining the CBI Partner Program. During his visit, Kidney spoke at investor and industry events and met with Iceland’s Prime Minister and the Minister of the Environment, to talk about green bonds. CBI’s main objective is to enlist global bond markets for climate change solutions.
Speaking with Frettabladid, Kidney expressed his view that uncertainty stemming from global warming makes it increasingly difficult for investors to choose companies to invest in. Global warming must therefore be addressed, and part of that effort is the increased issue of green bonds. The issuance of green and climate bonds is exclusively to finance environmentally sound projects. Kidney says that the risk-return from green bonds is similar to traditional bonds. “They are a sensible investment option and strengthen the economy’s ability to address the climate crisis,” he said to Frettabladid, encouraging the Icelandic government to do their part and issue green bonds.
In an interview with Morgunbladid Kidney stated that Iceland is well positioned to become the first nation in history to only issue green bonds. Kidney said he and his ideas were well received by the government’s representatives. “There is also great interest with Icelandic investors. In local issues of green bonds, the demand has been up to tenfold,” he stated in the interview, also pointing out that green bonds are the world’s fastest-growing financial product. Last year total green bond issuance amounted to 167 billion US dollars, while this year the number is going to be 250 billion, and next year the issue is headed for up to 400 billion dollars. “Around the middle of next year, total green bond issuance will amount to one trillion US dollars.”