The Australia and New Zealand Green Finance Country Briefing analyses green bond issuance to date in Australia and New Zealand. The report finds that 100% of issuances have received an external review with 85% Certified Climate Bonds, demonstrating best practice in the market.
- Total green bond issuance: Australia AUD8.3bn (USD6.3bn), New Zealand NZD2.1bn (USD1.5bn)
- 2018 issuance in Q1 and Q2: Australia AUD2.6bn (USD1.95bn), New Zealand NZD200m (USD136m)
- Growth expected particularly from green RMBS in Australia and renewable energy in New Zealand
- Australian entities were early issuers of green bonds and have been important players ever since. The Australian green bond market has been driven by the banking and real estate sectors since the first deals in 2014.
- New Zealand issuers entered the market in 2017 with a Certified Climate Bonds programme. Australia and New Zealand are leaders in best practice and Certification under the Climate Bonds Standard.
The briefing identifies low carbon transport and renewable energy, residential mortgage financing, climate-resilient water infrastructure, as well as recycling and waste management as potential growth areas for green finance.
It also highlights a bigger role of Australia’s superannuation funds in driving the brown-to-green transition amongst listed companies.