Thus far, seven sovereign issuers around the world have sold green bonds for a combined equivalent of US$25.5 billion (Bt844 billion) and Moody’s expects the pace of issuance to accelerate as governments seek to promote sustainable policy agendas, encourage private capital into low-carbon and climate-resilient infrastructure, as well as signal their commitment to the Paris Agreement.

“Green-bond issuance provides a strong signal of a government’s commitment to its climate and environmental policy agenda and, in particular, how it intends to raise capital to implement its Paris Agreement commitments,” said Rahul Ghosh, a senior vice president at the ratings company.

The Moody’s report is titled “Green Bonds – Sovereign: Sovereign green bond market on course for critical mass, but challenges remain”.