In a special edition of SEB The green bond report, we publish outlook for renewable energy investments and for the sustainable debt market next year. We predict 2022 could be the year the world finally breaks away from a decade of stagnant renewable energy investment, and forecast global investment to jump from around 25% to nearly 400 billion dollars. Regarding sustainable financing, we expect global transactions to total between $ 2.3 trillion and 2.6 trillion dollars next year, driven mainly by strong growth in green bond issuance.
From the perspective of transition, we look at how the current energy crisis Europe and Asia will particularly affect investments in renewable energies in the future. With soaring energy and electricity costs, which have made all kinds of power generation extremely profitable, we believe the crisis will pave the way for a break with the disappointing flattening trend of the latter. decade.
“After a decade in which investments in clean energy were capped at 300 billion dollars, we expect a jump close to 400 billion dollars in 2022, as governments start spending more on infrastructure, ”says Thomas thygesen, Head of Research, Climate & Sustainable Finance, at SEB. “We see an advantage in this estimate, as companies facing skyrocketing energy bills may see the opportunity to offset this cost by committing to now highly profitable investments in decentralized renewable energy supply.”
The report also presents a sustainable financing outlook for 2022. In our baseline scenario, we expect the global volume of sustainable bonds and loans to reach $ 2.3 trillion next year while in our more optimistic scenario – the green growth scenario – emissions are expected to increase to 2.6 trillion dollars. This compares to an estimated total transaction volume of $ 1.550 billion in 2021.
“While we don’t expect a further doubling of the market like the one we saw in 2021, we are still very confident that the exponential growth in sustainable finance is expected to continue in 2022,” said Gregor Vulturius, Climate & Sustainable Finance Advisor at SEB. “In particular, we expect sustainable themed bonds to continue to grow strongly next year, with a 35% to 53% increase in new issuance of green, social, sustainable and sustainability bonds.”
The overall growth in sustainable financing in 2022 will be mainly driven by the issuance of green bonds, which is expected to increase by 50% year-on-year to more than 900 billion dollars in our reference scenario and from 70% to a little more 1000 billion dollars in the green growth scenario.
On The green bond report
SEB which, with the world Bank developed the concept of green bond in 2007/2008, publishes research publication The green bond 5 to 6 times a year. It strives to bring readers the latest information on the world of sustainable finance through various themes. Even though the report covers all kinds of products and developments in the sustainable finance market, we have decided to keep its historical name – The green bond – in tribute to our role as a pioneer in the green bond market. You can find The green bond report on sebgroup.com and here.
For more information, contact:
Lina Apsheva, Climate & Sustainable Finance
+46 70 767 6527
Press contact:Niklas magnusson, Group Press Officer
+46 70 763 8243
SEB is a leading financial services group in Northern Europe, convinced that entrepreneurial minds and innovative companies are essential to create a better world. We take a long-term perspective and support our customers through good and bad times. In Sweden and the Baltic States, SEB offers financial advice and a wide range of financial services. In Denmark, Finland, Norway, Germany and the UK, the bank’s operations are strongly focused on corporate and investment banking on the basis of a comprehensive service offering to corporate and institutional clients. The international character of SEB’s activity is reflected in our presence in more than 20 countries around the world, with around 15,500 employees. AT September 30, 2021, the Group’s total assets amount to SEK 3,585 billion while its assets under management amounted to 2,422 billion Swedish kronor. Find out more about SEB on https://www.sebgroup.com
(c) Decision 2021. All rights reserved., source Press Releases – English