PO Box 2044
Durham, NC 27702
201 West Main St
Durham, NC 27701
December 9, 2014
Croatan Institute and our partner, Clean Energy Group, released the first comprehensive study of U.S. institutional investors’ appetite for green bonds today. The study, What Investors Want: How to Scale Up Demand for US Clean Energy and Green Bonds, provides a blueprint for growing the market for fixed-income securities to finance clean energy projects and solve climate problems.
The report found that the U.S. market for green bonds is robust and growing: states, cities, government agencies, and corporations have issued billions of dollars of green bonds to finance investments in energy efficiency and clean energy.
The study examined what institutional investors need – and identified the demand characteristics that must be met – in order to make the decision to purchase these financial instruments.
Josh Humphreys, President and Senior Fellow at Croatan Institute, said of the paper: “Most of today’s discussions about green bonds have focused on high-quality bonds issued by international financial institutions and development banks, but the U.S. also has a vigorous tradition of using bonds to finance renewable energy. Investors and issuers are beginning to recognize the opportunity that green bond finance presents for investing in energy solutions we need. This paper provides an analysis and an action plan to realize the full potential of green bonds.”
“Clean energy and green bonds will become an important way to scale up clean energy finance and solve climate problems,” said Lewis Milford, President of Clean Energy Group. “Also, these bonds are a new option for investors who want to divest from fossil fuels. For those who want to take money away from fossil-fuel industries, they should also consider ways to take the market away from carbon-based businesses by investing in clean energy bonds.”
The two groups conducted interviews with a broad cross-section of bond buyers, asset managers and investment consultants, foundation endowments, faith-based investors, investment banks, corporations and insurers, and public pension funds.
Preliminary findings from the inquiry were also discussed at a side event to the United Nations Climate Summit in New York City in September 2014.
Clean Energy Group and Croatan Institute will discuss their findings more fully on a webinar on Wednesday, January 14, 2015, from 1-2 pm ET. Register here for the webinar.
For a full version of the report, click here.