Raft of developing countries are considering selling bonds earmarked for environmental projects, potentially accelerating growth in a market seen as crucial to efforts to keep global temperatures in check media reports on Tuesday.
France and Poland have in recent months become the first sovereigns to issue ‘green’ bonds, previously the domain mainly of development banks and companies.
Among the hundreds of financiers that descended on London for a major green bond conference on Monday, there were hints that other governments such as Kenya and China are planning to help scale up this market.
They are on the move to meet a 2015 pledge by world leaders to limit global warming this century to below two degrees Celsius.
West African powerhouse, Nigeria, is set to be next, having last month unveiled plans to launch a local currency green bond in April.
However, further east on the continent similar plans are being hatched.
The governor of the Central Bank of Kenya, Patrick Njoroge, told media that there would be a sovereign debt issue “down the road” to follow a fast-approaching private sector initiative from a number of banks.
“We have a huge pool of investors and you would hope that with time this would become a fashion.
There is no other show in town, it has to be green,” Njoroge said at the event hosted by London-based non-profit Climate Bonds Initiative (CBI).
Speaking earlier to an audience, Njoroge said that emerging markets were not the biggest contributors to climate change, but they were feeling the most pain through events such as droughts.