Green Finance for the Green Deal: Orchestrating a multi-trillion Euro Game - VCI & IW-Webinar, 18.11.2020, 10:00 - 11:00
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20.05.2020
©
Green Finance for the Green Deal: Orchestrating a multi-trillion Euro Game
VCI & IW-Webinar, 18.11.2020, 10:00 – 11:00
Moderation & Speakers
Dr. Pierre Gröning Estelle Göger Thorsten Pinkepank Kristina Jeromin Dr. Markus Demary
Moderator Member of Cabinet Director Sustainability Managing Director, Senior Economist for
Executive Director of Paolo Gentiloni, Relations, BASF SE Green and Monetary Policy and the
DG Economic and Sustainable Finance Economics of Financial
EU Office, VCI
Financial Affairs, Cluster Germany & Markets, German
European Sustainable Finance Economic Institute (IW)
Commission Committee of the
German Federal
Government
2
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Estelle Göger Member of Cabinet of Paolo Gentiloni, DG Economic and Financial Affairs, European Commission 5
Thorsten Pinkepank Director Sustainability Relations, BASF SE 6
Kristina Jeromin Managing Director, Green and Sustainable Finance Cluster Germany & Sustainable Finance Committee of the German Federal Government 7
Dr. Markus Demary Senior Economist for Monetary Policy and the Economics of Financial Markets, German Economic Institute (IW) 8
Are Green Bonds suitable for
financing the greening of the
economy? Dr. Markus Demary
Brussels, 18th of October 2020
Global Bond Markets
The Green Bond In Bill. USD, Financial Non- Govern- Inter- Overall
volume is currently September Industry financial ments natitional
small, but expected 2017 Corporations Organi-
to rise. zations
Global Bond Volume
For reaching the
Overall 16 401 3 607 1 897 1 706 23 581
climate goals, the
issuance volume has Climate- 623 137 71 65 895
to increase by the Aligned
Bonds
factor 50.
Green Bonds 154 34 17 16 221
This sounds huge, but Global Issuance in 2017
the volume of
Green Bonds 109 24 12 11 156
conventional bonds is
expected to decline, Needed issuance volume for financing the 7.000 Bill. USD investments for reaching the
when Green Bonds climate goals
gain investors‘ Green Bonds 5 425 1 193 618 564 7 800
interest. (Scaled with
factor 50)
Sources: Bank for International Settlements (2018); Climate-Bond Initiative (2018a, 2018b), own calculationsMarket needs some help (but only some)
Conclusion
The supply of green bonds
• The market has some problems in determining which projects
green the economy
• Investors need information about greenness
• But the definition of green projects is a technical one, not an
economic one
The demand for green bonds
• Investors are interested in financing the greening of the econony
• This is a good starting point
• But a „green bubble“ could build-up if credit risks will be discarded
for greenness
• There are green projects that can be better financed by venture
capital rather than by green bondsPanel debate Moderation by Pierre Gröning, VCI 12
Disclaimer
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of our knowledge and belief. No responsibility is taken for the topicality,
correctness and completeness of the information. The German Chemical
Industry Association (VCI) is not liable for any damage resulting from the
use of the information provided. This does not apply if such damage was
caused by VCI intentionally or through gross negligence.
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13Thank you for your attention © VCI-Thomas Koculak
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