Australian Green Bonds Record Year 2022 could be a record yea | Cbonds Global

Australian Green Bonds Record Year

2022 could be a record year for Australian green bond issues. In fact, AU $ 4.6 billion ($ 3.2 billion) of green debt has already been sold this year. In 2021 the total was 6 billion Australian Dollars An increase in offers denominated in Australian dollars in the last 10 months has fueled sales this year, which are 150% higher than in the same period of last year. For example, here we have a recent issues made by New South Wales Treasury Corp: New South Wales Treasury Corp., 1.25% 20nov2030, AUD, AU3SG0002348.

This trend confirms the will of the new Australian government to fight climate change and reduce greenhouse gas emissions. Australia's sustainable debt industry was strengthened by the federal election in May, which saw a record vote for the Greens and cemented climate policy as a priority for the Labor government, said Susan Barron, global head of capital markets. in London at Barclays Plc.

In addition, Australian Prime Minister Anthony Albanese has radically changed course from his predecessor and aims to reduce emissions from Australia's worst polluters by 6% per year. Finally, Westpac Banking Corp. last month became the latest member of the country's big four banks to join the Net Zero Banking Alliance, pledging to net zero emissions by 2050.

Anyway, "The challenge here of course is that we are a very natural resource heavy economy," said Duncan Beattie, head of the capital markets department for Australia and New Zealand at Barclays in Sydney. “ESG here has clearly grown exponentially over the past 5-10 years. It was very important even before the change of government, and it has probably become even more important going forward."