COVID-19 and the SDGs drive growth in sustainable bonds
The Asian Development Bank is developing a publication on the SDG Accelerator Bond idea in collaboration with the Sustainable Development Investment Partnership (SDIP) ASEAN Hub and experts from the private sector.
According to Moody’s, global sustainable bond issuance topped nearly $100 billion in the second quarter of 2020, a quarterly record. An emerging trend is that the established green bond market is being increasingly supplemented by social and sustainable bonds.
For many developing countries, the COVID-19 pandemic has forced a shift from climate financing towards relief, recovery, and social investment. In addition, the increase in bonds for social development may also be due to a growing realization that we have less than a decade to achieve the 17 ambitious UN Sustainable Development Goals.