Speaking yesterday at this week's Reuters Global Climate Change Summit in London, Zurich Insurance CIO Cecilia Reyes said that the integrity of the fast-growing green bond market is at risk unless a clear definition of what passes for green can be agreed.
"In capital markets, trust is key. If there is going to be a lot of 'green washing', this market will die," Reyes said at the insurer's headquarters in Zurich. It's in our best interests to safeguard the integrity of this market, otherwise it will be a one-time show".
The same story has Michael Wilkins, MD of Infrastructure Finance Ratings at Standard & Poor's, telling the Summit that he agreed that some form of green standards was necessary.
"One of the big issues with green bonds is standardization, classification and ensuring there is credibility in terms of what is being financed".
