In the first half of 2023, debt issuance for environmentally friendly projects totaled USD 347 billion compared to USD 233 billion for fossil fuel projects according to data compiled by Bloomberg. However, much of this year’s green debt issuance is from financial institutions, governments, and a few utilities and less from renewable companies. Furthermore, it’s unclear how the funds are being used. Debt issuance by the fossil fuel industry is also lower due to higher prices for their end products resulting in substantial cash flows and reducing the need for external financing. Nonetheless, the amount of debt issuance for green project in on a long-term upwards trend and 2023 could be another record year if issuance continues at this pace.
Source: Bloomberg, 2023.