New Zealand Green Investment Finance has co-sponsored a Climate Bonds Initiative report detailing the green corporate lending market in New Zealand and Australia.
The report explores what has happened so far, best practice in labelling a green loan, and what should be done to channel loan markets for climate change investment. It also provides commentary on sustainability-linked loans and green consumer loans.
Sustainable finance will play an important role in transitioning economies to a low carbon basis and promoting social, financial and economic resilience for a future in line with climate and environmental objectives.
The report finds that both New Zealand and Australia are endowed with favourable factors to significantly grow a climate/green labelled loan market:
Corporate loan and residential mortgage markets are dominant forms of funding, much larger than corporate bond markets;
Financial markets are highly sophisticated;
The corporate sector is actively engaged in climate change and transitioning to a net zero emissions economy;
Developed and diversified green and sustainable finance sectors; and
Strongly growing ESG agenda among local asset owners, asset managers, and banks.
Read the Green Loans Australia & New Zealand Report on the CBI website.