NN IP forecasts that green bond issuance will grow by 25%, to €500 billion in 2022, with Europe leading the growth. Europe will account for the surge because the European Union is issuing €250 billion in green bonds over the next five and a half years in support of its Next Generation EU fiscal plan.
NN IP also concluded that the introduction of the EU Taxonomy, which lays down clear guidelines for environmentally sustainable economic activities across several sectors, also encourages bond issuance.
The firm predicts that social bond issuance will grow by €25 million to €200 billion in 2022 and sets sustainability bond issuance to reach €200 billion, up €55 billion.
Douglas Farquhar, green bond client portfolio manager, at NN IP: “The EU is expected to take centre stage on issuance with an estimated €50bn to €100bn in green bonds coming to market in 2022 to support European countries hit hard by the COVID-19 crisis. We are also expecting a strong acceleration of sectors that have previously lagged in green bond issuance, including metal and mining companies, oil and energy companies and chemical companies.”